Rupee registers gain against US dollar

The Pakistani rupee continued its modest upward trend on Monday, increasing 0.01% against the US dollar. At the end of the trading day, the local currency was valued at 277.47, marking a gain of Re0.03 compared to the greenback. On Friday, the rupee had settled at 277.50 against the dollar. Meanwhile, the US dollar hovered close to a two-week high on Monday, as traders increased their expectations of a rate hike following hawkish comments by Federal Reserve Chair Kevin Warsh.

Meanwhile, the Japanese yen retreated below the significant 160-per-dollar threshold. The euro strengthened by 0.1% to $1.1591, while the British pound remained unchanged at $1.3539. Both currencies were on track for a second consecutive monthly increase. The dollar index, which tracks the US currency against six major currencies, declined slightly to 99.6 after surging 0.6% on Friday to its highest level since August 17.

Nevertheless, the index was still set for a second straight monthly decline, as earlier plans to repurchase US Treasury bonds in the month reignited debasement trades. Furthermore, oil prices surged more than 2% on Monday, with Brent crude futures rising $2.21, or 2.51%, to $90.31 a barrel, and US West Texas Intermediate crude increasing by $1.83, or 2.19%.