Key Takeaways
- The Pakistani rupee closed at 277.96, up Re0.01 from Thursday.
- US inflation data influenced the dollar's performance this week.
- Oil prices rose on Friday due to increased tensions in the Gulf.
The Pakistani rupee strengthened against the US dollar on Friday, closing at 277.96 after gaining Re0.01 from its Thursday settlement of 277.97.
This gain comes amidst a broader trend in global currency markets where the dollar faced downward pressure due to softer-than-expected inflation data from the United States.
The Federal Reserve’s reduced likelihood of immediate rate hikes, coupled with safe-haven flows, contributed to the weakening of the greenback.
Other currencies also showed fluctuations; the euro was trading at $1.1445 and set for a 0.29% rise in the week, while sterling fetched $1.3476, up by 0.56%. The Japanese yen remained near its 40-year low of 162.84 per US dollar.
The dollar index, which measures the US currency against six other units, fell to 100.72 for a weekly decline of 0.24%, reflecting easing chances of a rate hike and safe-haven flows supporting the greenback.
In energy markets, oil prices saw an upward movement on Friday following increased tensions between the United States and Iran in the Gulf region. Brent crude futures climbed $1.05 or about 1.25% to $85.28 a barrel by 01:18 GMT, while US West Texas Intermediate (WTI) futures rose $1.03 or 1.3% to $79.98 a barrel.
Both benchmark contracts have seen significant gains this week, with Brent on track for its third consecutive weekly gain and WTI for its second weekly increase.
