Pakistani rupee records 21st successive gain against US dollar

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

At close, the rupee settled at 281.65, a gain of Re0.02 against the greenback. This was the rupee’s 21st consecutive gain against the greenback.

On Thursday, the local unit closed at 281.67.

Internationally, the US dollar mostly held its ground on Friday as bond markets stabilised and traders awaited key US jobs data expected to firm up the case for an interest rate cut by the Federal Reserve.

The greenback inched up in US hours on Thursday and was poised for a second straight weekly gain on relatively light trading and as investors refrained from big moves ahead of the payrolls figures.

Data on Thursday showing higher-than-expected applications for jobless benefits in the United States served as a prelude to the more critical non-farm payrolls report that will feed into the Fed’s policy decision this month.

Bonds rallied in the US, Europe, and Japan after fiscal concerns spurred a run-up in long-term yields. The yen edged higher as Japan’s chief trade negotiator spelled out details of a solidified trade deal with the US

Concerns about US President Donald Trump’s meddling with the Fed policy and his unpredictable tariffs have compelled investors to be shy of holding dollar assets of late, said Bart Wakabayashi, the Tokyo Branch Manager of State Street.

The dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was little changed at 98.207, set for a 0.4% gain this week.

The greenback dropped 0.2% to 148.22 yen. The euro was up 0.1% on the day at $1.1656.

Oil prices, a key indicator of currency parity, extended its decline into a third session on Friday, heading for a weekly loss for the first time in three weeks as expectations grow of higher supply and a surprise increase in US crude inventories added to demand concerns.

Brent crude futures fell 35 cents, or 0.5%, to $66.64 a barrel by 0810 GMT, while US West Texas Intermediate crude dropped 33 cents, or 0.5%, to $63.15.