The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.04% in the inter-bank market on Thursday.
At close, the currency settled at 277.84, a loss of Re0.11 against the greenback.
On Wednesday, the rupee had settled at 277.73, according to the State Bank of Pakistan (SBP).
Internationally, the US dollar traded close to a three-month high against major peers on Thursday, underpinned by expectations for a slower pace interest rate cuts by the Federal Reserve and growing bets of a possible second Donald Trump presidency.
The dollar index, which measures the currency against six rivals including the euro and yen, stood at 104.38 as of 0115 GMT, not far from the overnight high of 104.57, a level last seen on July 30.
A spate of robust macroeconomic indicators and some hawkish comments from Fed officials have tempered bets for monetary easing over the rest of this year, according to CME Group’s FedWatch Tool.
Expectations for 50-basis-point rate cuts over the remaining two meetings of 2024 as opposed to a smaller reduction dropped to about 65% from about 70% a day earlier, and about 85% a week ago.
Oil prices, a key indicator of currency parity, rose more than 1% on Thursday, reversing some of the previous session’s losses, as the Middle East conflict and reports of North Korean troops ready to help Russia in Ukraine kept traders on edge ahead of the US presidential election.
Brent crude futures were up $1.26, or 1.7%, to $76.22 a barrel as of 0905 GMT.
US West Texas Intermediate crude futures climbed $1.26, or 1.8%, to $72.03. Oil prices have gained about 4% this week after shedding more than 7% last week on concerns of oversupply and weak demand and a perceived calming of Middle East tensions.
American Dollar Exchange Rate