Rupee stable against US dollar

The Pakistani rupee remained largely stable, appreciating 0.01% against the US dollar in the inter-bank market on Thursday.

At close, the currency settled at 278.69, a gain of Re0.04, against the greenback.

On Wednesday, the local unit closed at 278.73 against the US dollar, according to the State Bank of Pakistan (SBP).

In recent months, the domestic currency has largely been around 277-279 against the dollar as traders have an eye on some strong positive indicators.

Globally, the yen firmed on Thursday after a sharp drop in the previous session in a volatile week that has left sentiment fragile as investors weigh the unwinding of popular carry trades and ponder the rate path Japan’s central bank is likely to take.

The Japanese currency started the week by touching a seven-month high of 141.675 per dollar, a far cry from the 38-year lows it was rooted at in early July as soft US jobs data last week stoked recession worries and roiled investors.

A surprise hike from the BOJ last week also led investors to bail out of carry trades, in which traders borrow the yen at low rates to invest in dollar-priced assets for higher returns.

The sharp moves in the yen has pushed the dollar index , which measures the US currency against six rivals including the yen, to 103.08, near the seven-month low of 102.15 it touched on Monday.

Oil prices, a key indicator of currency parity, held steady on Thursday after two sessions of gains, with growing supply risks in the Middle East offsetting demand concerns that had pushed prices to their lowest since early 2024 at the start of the week.

Brent crude futures fell 16 cents, or 0.2%, to $78.17 a barrel by 0903 GMT.

US West Texas Intermediate crude lost 9 cents, or 0.12%, to $75.14.