Rupee registers gain against US dollar

On Friday, the Pakistani rupee strengthened slightly against the US dollar in the interbank market, gaining Re0.03 to settle at 277.32. The rupee had closed the previous day at 277.35 against the greenback. Internationally, the US dollar hovered near its highest levels of the past week, while the yen declined for the second consecutive day on Friday due to renewed concerns about potential Middle East energy supply disruptions.

These developments pushed up bond yields and oil prices, causing the US dollar index to trade at 99.081, maintaining its position after a 0.3% increase on Thursday. The index had reached its highest level since September 7, following reports that US producer prices rose 0.4% in August, meeting market expectations as energy prices rebounded.

Oil prices, a critical factor in determining currency strength, surged on Friday, with both major benchmarks on track to end the week above $100 a barrel for the first time since mid-May. Rising attacks along key shipping routes in the Middle East heightened fears of a prolonged supply disruption, driving up oil prices and bolstering the rupee's gains.