Rupee continues to gain against US dollar

The Pakistani rupee maintained its positive trajectory against the US dollar, appreciating 0.01% in the inter-bank market on Friday.

At close, the currency settled at 280.72, a gain of Re0.04 against the greenback.

On Thursday, the local unit closed at 280.76.

Globally, the US dollar struggled to claw back steep losses on Friday and was on track for a weekly fall, as investors awaited a backlog of US data following the government’s reopening, which they expect will likely point to a weakening economy.

The overnight move lower in the dollar came alongside a selloff in US equities and bonds eerily reminiscent of the market turmoil in April, as investors pared back bets of a Federal Reserve rate cut in December.

However, expectations of a more hawkish Fed failed to lift the dollar, which fell to a two-week low against the euro overnight.

The common currency bounced back above the $1.16 mark and last bought $1.1630.

The Swiss franc similarly held near an over three-week high and steadied at 0.7933 per dollar. Against a basket of currencies, the greenback languished near a two-week low at 99.27.

The dollar index was headed for a weekly fall of 0.3%.

The Japanese currency was on track for a fall of nearly 0.8% for the week.

Down Under, the Australian dollar fell 0.02% to $0.6529, having slid overnight owing to the broad risk-off sentiment.

The New Zealand dollar last bought $0.5654, having similarly lost 0.25% in the previous session.

Oil prices, a key indicator of currency parity, jumped about 2% on Friday on supply fears after a Ukrainian drone attack hit an oil depot in the Russian Black Sea port of Novorossiysk, a major export hub.

Brent crude futures rose $1.24, or 1.97%, to $64.25 a barrel by 0315 GMT, while US West Texas Intermediate crude rose $1.25, or 2.13%, to $59.94 a barrel.