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Rupee registers improvement against US dollar

January 16, 2026
in Markets
Rupee registers improvement against US dollar
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Rupee’s Performance Against US Dollar Since 04 March 2025

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The Pakistani rupee registered marginal gain against the US dollar in the inter-bank market on Friday.

At close, the local currency settled at 279.95, a gain of Re0.01 against the greenback.

On Thursday, the e local unit closed at 279.96.

Internationally, the US dollar was poised for a third weekly gain on Friday after positive US economic data lowered expectations for rate cuts by the Federal Reserve anytime soon.

The greenback rose overnight on a surprise decline in weekly jobless figures and was steady in Asian morning trade. The yen remained at levels that risked intervention in currency markets by Japan to defend its currency.

Fed funds futures have pushed back expectations for the next rate cut to June on the back of improving employment data and as central bank policymakers expressed concern about inflation.

The dollar index, which measures the greenback against a basket of currencies, was little changed at 99.36 and poised for a 0.2% advance this week. The euro was steady at $1.1607.

The yen strengthened 0.05% against the greenback to 158.58 per dollar, but is set to fall about 0.5% this week.

Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 198,000 for the week ended January 10, the Labor Department said on Thursday. Economists polled by Reuters had forecast 215,000 claims for the latest week.

Oil prices, a key indicator of currency parity, rose slightly on Friday as market participants weighed concerns about supply risks, though the chances of a US strike on Iran have receded.

Brent gained 5 cents, or 0.1%, to $63.81 per barrel, while US West Texas Intermediate rose 8 cents, or 0.1%, to $59.27 per barrel at 0749 GMT.

Both Brent and WTI rose to multi-month highs this week after protests flared up in Iran and US President Donald Trump signalled the potential for strikes on the nation.

Brent prices were still set for a fourth week of gains

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