Rupee records gain against US dollar

On Wednesday, the Pakistani rupee achieved a slight gain against the US dollar in the interbank market, closing at 277.36 per dollar, marking an increase of one paise. The rupee had settled at 277.37 against the dollar on Tuesday. Internationally, the Japanese yen remained stable near its strongest level since February, putting pressure on the dollar as traders dealt with oil prices approaching $100 per barrel due to an escalating conflict in the Middle East.

The Houthis in Yemen carried out attacks on several Saudi cities, escalating tensions in the ongoing conflict, while US forces targeted Iranian oil tankers and Iran struck a US base in Jordan. This situation led to a modest decline in the dollar's value, although some analysts suggested the weakening was partly due to the yen's rapid rise in recent weeks.

The euro maintained its position at $1.1631, while the British pound bought $1.3546. The dollar index, which tracks the US currency against six peers, stood at 98.15, nearing its lowest level in nearly two weeks. Strategists at OCBC noted that the recent escalation could keep focus on the potential for higher US interest rates, especially after a strong US employment report last week renewed expectations of another rate hike.

Oil prices, a crucial factor in currency parity, surged past the $100 mark on Wednesday, breaking the milestone for the first time since July 24. Concerns over oil supplies from the region, driven by the intensifying conflict, contributed to the price increase. Brent crude futures climbed $2.15, or 2.2%, to $100.07 a barrel by 0721 GMT, and US West Texas Intermediate crude also rose $1.70, or 1.83%, to $94.73 a barrel.