Rupee registers gain against US dollar
The Pakistani rupee continued its marginal gain against the US dollar in the inter-bank market on Tuesday. The local unit closed the day at 276.71, a gain of Re0.01 against the greenback. On Monday , the rupee had closed at 276.72 against the dollar. Globally, the US dollar wavered alongside oil prices on Tuesday on hopes for a diplomatic breakthrough between the US and Iran, while the Aussie was…
On Tuesday, the Pakistani rupee exhibited a slight improvement against the US dollar in the inter-bank market. The local currency closed at 276.71 per dollar, marking an increase of Re0.01 from Monday's closing rate of 276.72. Globally, the US dollar experienced fluctuations alongside oil prices due to optimism surrounding a potential diplomatic resolution between the United States and Iran.
Meanwhile, the Australian dollar remained relatively stable ahead of the Reserve Bank of Australia's interest rate decision. Falling energy prices contributed to a decrease in inflation concerns, which in turn put downward pressure on longer-term US Treasury yields. As of Tuesday morning, the yield on the benchmark 10-year US Treasury note remained steady at 4.9145%, while the 30-year bond's yield was also unchanged at 5.2868%.
The dollar index, which gauges the currency against a basket of currencies, including the yen and the euro, finished the day marginally weaker at 101.76, after a slight dip to a one-month low on Monday. Concurrently, a surge in AI-driven stock market declines had a dampening effect on risk sentiment, providing a slight boost to the dollar.
Heightened tensions surrounding the U.S. midterm elections further bolstered the dollar's appeal as a safe-haven currency. The euro showed a marginal uptick at $1.1185, attributed to the weakening of the dollar. The Japanese yen remained relatively stable at 157.915 per dollar, despite the holiday period. Oil prices, a crucial factor in determining currency parity, experienced a slight upward trend on Tuesday.
Following a report that the United States had conducted airstrikes on Iran's Qeshm Island, crude oil prices witnessed a modest recovery, with West Texas Intermediate crude rising by 20 cents, or 0.21%, to $96.66 a barrel, while Brent crude futures increased by 3 cents, or 0.03%, to $104.80 a barrel. However, both benchmark prices declined by over 7% on Monday as talks between Iranian and Qatari officials generated optimism for a resolution to the ongoing conflict between the U.S. and Iran.
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