Rupee gains marginally against US dollar

The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.03% in the inter-bank market on Friday.

At close, the local unit settled at 278.51, a gain of Re0.09 against the greenback.

On Thursday, the rupee had closed at 278.60 after a fall of Re0.03.

In recent weeks, the domestic currency has largely been around 277-279 against the dollar as Pakistan moves forward with its plan to win a longer and larger International Monetary Fund (IMF) bailout programme.

Globally, the US dollar pushed to a fresh eight-week top above 159 yen and clung close to a five-week peak to sterling on Friday, with the Federal Reserve’s patient approach to cutting interest rates contrasting with more dovish stances elsewhere.

The dollar index, which measures the currency against six major peers including the yen, sterling, euro and Swiss franc, spiked 0.41% overnight, turning positive for the week following a second successive rate cut at the Swiss National Bank and hints from the Bank of England for a reduction in August.

Meanwhile, the yen has continued to be on the back foot after the Bank of Japan’s decision last week to hold off on reducing bond-buying stimulus until its July meeting.

Oil prices, a key indicator of currency parity, were little changed on Friday but on course to rise for a second week amid signs of improving demand and falling oil and fuel inventories in the US, the world’s biggest oil consumer.

Brent futures for August settlement were down 13 cents to $85.58 a barrel by 0927 GMT, while US West Texas Intermediate crude futures for August delivery were down 10 cents to $81.19. Prices have risen about 5% this month to their highest point in more than seven weeks.