Rupee registers gain against US dollar

The Pakistani rupee maintained its slight increase against the US dollar on Thursday, closing at 276.61 per dollar. This represents a gain of just one paisa compared to the previous day's close at 276.62. Globally, the US dollar experienced a 19-month high against major currencies on Thursday, propelled by expectations of a Federal Reserve rate hike and hawkish remarks from central bank officials.

Traders responded by increasing their bets on additional Fed tightening amid stronger-than-expected October inflation data. The dollar index, which gauges the greenback's value against a basket of currencies, rose 0.15% to 103.02, its highest level since April 2025. Meanwhile, the dollar strengthened against the Japanese yen, reversing an earlier decline, due to widening interest-rate differentials and heightened expectations of further Fed rate hikes.

Oil prices, which impact currency values, dropped over $1 per barrel as concerns over Middle East conflict escalation waned and increased OPEC+ output and US inventories heightened worries about oversupply. Brent crude futures fell 1.58% to $91.29 per barrel, while US West Texas Intermediate crude futures declined 1.43% to $85.29.