Rupee registers gain against US dollar

The Pakistani rupee gained marginally against the US dollar on Wednesday, closing at 277.20 per dollar, an increase of Re0.01. This follows a similar gain on Tuesday, when the rupee settled at 277.21 against the dollar. Globally, the US dollar maintained a relatively strong position, hovering near its highest level in two months, driven by expectations of interest rate hikes in the near future.

Meanwhile, oil prices dropped due to improved Gulf supply following Saudi Arabia's restart of operations at a key pipeline, and hopes for resolving the US-Iran conflict, which kept investors cautious. The euro traded at $1.1446, nearing its lowest level since late July, while the British pound was at $1.3337. The US dollar index stood at 100.56.

The recent series of interest rate hikes and hawkish statements from major central banks have been the driving force in currency markets, with investors anticipating further tightening if inflation remains persistent. The Federal Reserve has indicated the possibility of additional rate hikes if inflation fails to ease. The Japanese yen was valued at 157.55 per US dollar, reflecting cautious trader sentiment due to the perception that the Bank of Japan's recent rate hike was not sufficiently aggressive.