ISLAMABAD: The Pakistani rupee recorded a marginal gain against the US dollar in the inter-bank market on Monday, appreciating by three paisa despite a stronger greenback in international markets.
According to market data, the local currency closed at Rs278.02 against the US dollar, compared with Rs278.05 at the close of the previous trading session, reflecting an appreciation of 0.01 per cent.
The inter-bank market ended the day with the dollar quoted at Rs278.02 for buying and Rs278.22 for selling.
The rupee’s slight improvement came even as the US dollar strengthened against most major currencies worldwide.
Investor sentiment shifted in favour of the greenback after renewed military confrontation between the United States and Iran heightened concerns over inflation and fuelled expectations that major central banks could maintain tighter monetary policies.
In global currency markets, the dollar rose 0.2 per cent against the Japanese yen to 162.075, while the euro slipped 0.1 per cent to $1.1397. The British pound also weakened by 0.2 per cent to $1.3374.
The Australian dollar fell 0.3 per cent to $0.6928, while the New Zealand dollar eased 0.1 per cent to $0.5757. Meanwhile, the US Dollar Index, which tracks the greenback against a basket of six leading currencies, climbed 0.1 per cent to 101.13, after touching its strongest level since July 8 earlier in the session.
Oil prices also surged around nine percent on Monday after US President Donald Trump announced the reinstatement of a US naval blockade on Iranian ports and Washington and Tehran exchanged fresh military strikes, heightening concerns over security in the Strait of Hormuz.
By around 1820 GMT, Brent crude futures had risen 9.1 percent to $82.90 a barrel, while US benchmark West Texas Intermediate (WTI) climbed 9.1 percent to $77.87 a barrel.
The sharp rise came as tensions intensified around the Strait of Hormuz, one of the world’s most important oil shipping routes.
In the open market, however, the Pakistani rupee weakened against the US dollar. The currency lost six paisa on the buying side and 20 paisa on the selling side, with the dollar closing at Rs278.88 for buying and Rs279.64 for selling.
The rupee posted stronger performances against the euro, gaining 64 paisa for buying and 55 paisa for selling to settle at Rs319.14 and Rs322.08, respectively.
Against regional Gulf currencies, the rupee edged lower. It lost four paisa for buying and two paisa for selling against the UAE dirham, which closed at Rs76.14 and Rs76.71, respectively.
Against the Saudi riyal, the rupee shed three paisa for buying and seven paisa for selling, ending the session at Rs74.53 and Rs75.06.
