Rupee registers marginal gain against US dollar

The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.04% in the inter-bank market on Tuesday.

At close, the local unit settled at 278.50, a gain of Re0.12 against the greenback.

On Monday, the rupee had closed at 278.62 after a fall of Re0.11.

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 edged a touch higher in the broader market.

The dollar was last 0.04% higher at 159.64 yen, just a whisker away from the 160 level that prompted a 9.79 trillion yen ($61.33 billion) currency intervention from Tokyo in late April and early May.

In the broader market, the dollar was on the front foot ahead of Friday’s release of the US personal consumption expenditures (PCE) price index – the Federal Reserve’s preferred measure of inflation. Sterling edged 0.01% lower to $1.2683, while the Australian dollar fell 0.02% to $0.6655.

Against a basket of currencies, the dollar steadied at 105.49.

Oil prices, a key indicator of currency parity, were little changed on Tuesday after rising in the previous session helped by expectations of increased fuel demand this summer, but investors were cautious ahead of US consumer price data.

Brent futures for August settlement eased 5 cents to $85.96 a barrel as of 0640 GMT after gaining 0.9% on Monday, while US crude futures were down 3 cents at $81.60 a barrel after climbing 1.1% a day earlier.