The Pakistani rupee continued its marginal gain against the US dollar, appreciating 0.01% in the inter-bank market on Wednesday.
The local unit closed the day at 276.62, a gain of Re0.03 against the greenback.
On Tuesday, the rupee had closed at 276.65 against the dollar.
Internationally, the US dollar held gains near a two-week high in early Asian trade on Wednesday as a hotter-than-expected inflation report and hawkish comments from Federal Reserve officials fuelled bets the central bank will raise rates next month.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, was steady at 102.22, closing in on its highest level since October 28.
The gauge traded up 0.5% on Tuesday after data showed US consumer prices increased by more than expected in October amid higher costs for food and accommodation.
The dollar held onto its gains against its major peers in early Asian trading.
The euro and the British pound were flat at $1.1168 and $1.3345, respectively. Against the yen, the US dollar was unchanged at 158.715 yen.
The Australian dollar was up 0.1% at $0.6870, edging back from a seven-month low, while the New Zealand dollar was flat at $0.5605.
Comments from voting members of the Federal Reserve’s rate-setting committee signalling unease over high inflation have firmed expectations for further rate hikes, prompting traders to all but abandon bets that the US central bank will stand pat at its next policy meeting, which concludes on December 9.
Fed funds futures now imply a 91.9% chance of a 25-basis-point rate hike next month, up from 84% a day earlier, according to CME Group’s FedWatch tool. Markets have fully priced out the possibility of a pause and see a 9.1% chance of a larger 50-basis-point move, while assigning better-than-even odds to a second hike in January.
Oil prices, a key indicator of currency parity, rose on Wednesday from the previous session’s two-month lows, as the market swung between hopes for a de-escalation in the US-Israeli war on Iran and concerns about attacks on shipping in the Strait of Hormuz.
Also on Wednesday, a regional governor said a drone attack caused a fire in the port area of Ust-Luga by the Baltic Sea in northwest Russia, injuring three workers.
Brent futures climbed $1.04, or 1.1%, to $92.53 a barrel at 0420 GMT.
US West Texas Intermediate crude rose 67 cents, or 0.8%, to $86.71.
Source: brecorder
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