Intraday trade: Pakistani rupee remains stable against US dollar

KARACHI: The Pakistani rupee (PKR) remained mostly stable against the US dollar (USD) during early hours of trading in the interbank market on Friday gaining 0.01 per cent.

The local currency was valued at Rs278.03 in the morning, marking a marginal improvement of one paisa against the greenback.

In contrast, the rupee had weakened slightly on Thursday, depreciating by 8.15 paisa, or 0.03 per cent, to settle at Rs278.04 per USD. This was a small decline compared to the previous day’s close of Rs277.96.

Since the start of the current fiscal year, the PKR has appreciated by 29.68 paisa, or 0.11 per cent, against the dollar. It has also gained Rs3.82, or 1.37 per cent, so far this calendar year.

Globally, the Japanese yen surged by 1 per cent to reach a six-week high of 150 per US dollar on Friday. This increase followed higher-than-expected inflation in Tokyo, which fuelled speculation that the Bank of Japan might raise interest rates next month.

Meanwhile, the US dollar weakened against most major currencies, with the British pound hitting its highest level since November 20.

Despite the dollar’s recent slump after a surge to a two-year high against a basket of key currencies last week, it remains on course for a more than 2 per cent gain in November. This follows a jump of over 3 per cent in October.

Much of the dollar’s strength has been attributed to expectations surrounding Donald Trump’s election victory on November 5, which spurred hopes of increased fiscal spending, higher tariffs, and stricter immigration policies, all seen as inflationary.

However, the dollar index is currently on track for a 1.5 per cent decline this week, and it stood at 105.88, down 0.18 per cent in Friday’s trading.

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