Pakistani Rupee Gains Further Against US Dollar in Interbank Market
KARACHI: The Pakistani rupee continued its gradual recovery against the US dollar in the interbank market on Thursday, gaining three paisas during the trading session.
At the close of the business day, the local currency settled at Rs277.17 per US dollar, compared with Rs277.20 recorded on Wednesday. The rupee gained Rs0.03, or three paisas, against the dollar.
Global Market and Economic Situation
In international markets, the US dollar remained close to a two-month high on Thursday, supported by stronger manufacturing data and expectations of further interest-rate increases. The dollar index was recorded at 101.1.
Major Global Currencies
The strength of the US dollar pushed the euro down to a two-month low of $1.1378, while the British pound fell to a three-month low of $1.3231.
Bond Yields and Interest-Rate Outlook
The yield on five-year US Treasury bonds crossed 5 percent for the first time since 2007.
According to the CME FedWatch Tool, traders were pricing in a 70 percent probability of another interest-rate increase by the US Federal Reserve in October, up from 50 percent a week earlier.
Crude Oil Prices
Crude oil prices had risen by around 4 percent on Wednesday following remarks by Iran’s president and US President Donald Trump’s announcement regarding restrictions on diesel exports. However, oil prices edged lower on Thursday amid hopes for a diplomatic resolution.
Brent crude declined by 92 cents, or 0.9 percent, to $102.16 per barrel, while West Texas Intermediate (WTI) fell 77 cents, or 0.8 percent, to $91.39 per barrel.
