Pakistani rupee ends day with slight gain against US dollar

WEB DESK: In the interbank market on Wednesday, the Pakistani rupee showcased resilience, maintaining stability against the US dollar.

According to the State Bank of Pakistan (SBP), the local unit closed at 279.32 after a marginal loss of Re0.01 against the greenback, following a slight gain on Tuesday when it settled at 279.31.

Meanwhile, on the global front, the US dollar exhibited strength, trading near three-month highs against major peers. This surge came as traders adjusted their expectations for a Federal Reserve interest rate cut following higher-than-expected US inflation figures.

The US currency’s climb above 150 yen prompted Japan’s top currency diplomat to caution against “rapid” and “speculative” yen declines, hinting at potential intervention.

Federal funds futures currently indicate no rate cut in March and less than a 50 per cent chance of easing in May, according to LSEG’s rate probability app. This comes after the consumer price index (CPI) for January recorded a 3.1 per cent gain from a year earlier, surpassing the estimated 2.9 per cent rise.

Additionally, oil prices, a crucial indicator of currency parity, rebounded on Wednesday. Major oil-producing group OPEC maintained a strong forecast for demand growth this year.

An industry report also revealed a substantial decline in US fuel stockpiles due to a refinery outage. Brent futures climbed 16 cents to $82.93 a barrel at 0808 GMT, reflecting the impact of these global economic factors.

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