KEY POINTS
- The USD/PKR interbank rate closes at Rs 280.86.
- The currency gains Rs 0.01 against the US dollar.
- Market activity remains cautious with limited volatility.
- External factors and global currency trends continue to influence the rupee.
ISLAMABAD: The Pakistani rupee edged up against the US dollar in the interbank market on Wednesday, closing at Rs 280.86, up by Rs 0.01 from Tuesday’s closing rate of Rs 280.87, according to the State Bank of Pakistan (SBP).
Market participants observed that trading was subdued, with limited intraday volatility.
Internationally, safe-haven currencies such as the Japanese yen and the US dollar saw demand in the wake of a technology-led selloff on Wall Street that affected markets in Asia.
The Australian and New Zealand dollars weakened, with the New Zealand dollar hitting a 12-year low against the Australian dollar following a spike in domestic unemployment data.
The British pound remained near a seven-month low amid expectations of tax increases in the UK budget.
The US dollar index, which measures the dollar’s strength against the six major currencies, remained stable at 100.18 after reaching 100.25 for the first time since August 1.
Analysts attributed the dollar’s strength to divisions within the Federal Reserve over interest rate policy, which has lowered expectations of a December rate cut.
Oil prices showed little change, with Brent crude futures at $64.53 per barrel and US West Texas Intermediate (WTI) at $60.65, as investors assessed weaker economic data from major importers alongside strong US fuel demand.
Dealers in Pakistan reported routine foreign exchange transactions by importers and businesses, with a limited speculative activity.
