Rupee registers slight gain against US dollar

The Pakistani rupee registered marginal gain against the US dollar in the inter-bank market on Wednesday.

At close, the local currency settled at 281.05, up by Re0.01 against the US dollar, according to the State Bank of Pakistan (SBP).

The local unit closed at 281.06 on Tuesday.

Internationally, the US dollar weakened in early Asian trade on Wednesday, edging back from its highest level against the Japanese yen in a week, as a tumble in gold prices triggered a rebalancing across various safe-haven assets.

Gold fell as much as 2.9% to a low of $4,003.39 amid a broad decline in precious metals, retracing a rally that has seen the yellow metal’s biggest yearly gains in almost half a century.

The US dollar was last 0.2% weaker at 151.67 yen, after the release of data showing Japanese exports rose in September for the first time in five months.

The Japanese yen has lost 2.5% this month, its biggest monthly decline against the greenback since July, as Sanae Takaichi jostled to become Japan’s prime minister and investors anticipated expansionary fiscal policy and a testy relationship with the country’s central bank.

The dollar index, which measures the greenback’s strength against a basket of six currencies, was last trading unchanged at 98.888, slipping 0.1% after three consecutive days of gains.

Oil prices, a key indicator of currency parity, pushed higher for a second day on Wednesday, rising by about 2%, buoyed by sanctions-related supply risks and hopes of a US-China trade deal.

Investors also digested news that the US is seeking oil for delivery to its strategic reserves.

Brent crude futures rose $1.24, or 2.0%, to $62.56 a barrel as of 0645 GMT, while US West Texas Intermediate crude futures climbed $1.20, or 2.1%, to $58.44.

Oil had weakened to a five-month low on Monday as producers pumped more supply while trade tensions threatened to blunt demand.