Rupee Edges Higher Against US Dollar

The Pakistani rupee continues to maintain momentum on Thursday against the US dollar and appreciated 0.01% in the inter-bank market.

It closed at 281.27 with a gain of Rs0.04 against the US dollar. PKR closed at 281.31 on Wednesday against US dollar.

In the opening hours of trading on Thursday, the Pakistani rupee appreciated by 0.09% to Rs 281.07 against US dollar in inter-bank trade with a gain of Rs0.24.

The rupee strengthened slightly after closing at 281.31 on Wednesday. It continued a cautious trend of stability in recent sessions. Currency traders have attributed the movement to a combination of local demand-supply factors and global dollar fluctuations.Pakistani rupee edges up as US dollar slips

In global markets, the US dollar regained some footing in Asian trade. It regained after the US Supreme Court said it would hear arguments in January over President Donald Trump’s attempt to remove Federal Reserve Governor Lisa Cook.

The dollar index edged up 0.1% to 97.80. The move reflected ongoing investor caution as markets assessed the impact of the US government shutdown, which has suspended federal economic data releases at a time of heightened policy division.

The Trump administration on Wednesday intensified political tensions as it freezes $26 billion in funding for Democratic-leaning states.

It underscores the partisan battle underpinning the prolonged shutdown. The deadlock has fueled speculation about further monetary easing.

CME Group’s FedWatch tool showed a 99.4% probability of a 25-basis-point rate cut at the Federal Reserve’s October meeting, which is up from 96.2% just a day earlier.

The dollar was up 0.2% to 147.305 yen and gained 0.1% to trade at 7.13 against the offshore yuan.

Meanwhile, oil prices rose after three sessions of decline caused by oversupply concerns. Brent crude futures were up 37 cents, or 0.57%, at $65.72 per barrel. US West Texas Intermediate gained 34 cents, or 0.55%, to $62.12.