Rupee records gain against US dollar

The Pakistani rupee recorded a slight gain against the US dollar on Friday, increasing by 0.01% in the interbank market. The local currency closed at 277.07 per dollar, marking a rise of Re0.03 from Thursday's settlement at 277.10. Globally, the US dollar experienced its third consecutive weekly increase, reaching a 17-month high as bond market turmoil drove borrowing costs to multi-decade peaks amid inflation concerns over rising oil prices.

The Federal Reserve's upcoming jobs report, which may provide insight into the near-term policy stance, triggered investor panic following a sharp global bond sell-off. The bond market's volatility prompted a sell-off in currencies and commodities, with the euro hovering near its lowest level since May 2025 and the yen remaining steady.

The dollar index surged by 1% this week, marking three consecutive weekly gains. Meanwhile, US consumer prices rose less than anticipated in August, leading traders to lower expectations of a Federal Reserve rate hike this month. Policymakers hinted at a more cautious approach following mixed data, prompting a focus on the US payroll report due later in the day.

Global oil prices experienced a decline of over 2%, while European gasoil futures dropped by about 5% due to reports of potential additional diesel and crude stock releases, alleviating fears over global energy supply constraints.