The Pakistani rupee opened Wednesday’s interbank session on a slightly firmer note, gaining ground against the US dollar in the early minutes of trading.
By mid-morning, the local unit was hovering around 280.13 per dollar, up by Re0.17, reflecting an appreciation of 0.06 percent from the previous close. On Tuesday, the rupee had settled at 280.30 after a largely flat session.
Currency dealers said the modest uptick reflected a calm start to the day, with no major demand pressure visible in early trade. Volumes remained thin, a common feature during morning hours, while market participants continued to track global dollar movements for direction.
On a broader basis, the rupee has strengthened by Rs3.46, or 1.24 percent, against the dollar so far in the current fiscal year. However, it remains down by Rs1.75, or 0.62 percent, in the ongoing calendar year.
Global cues weigh on the dollar
Internationally, the US dollar was steady but remained close to its weakest level since early October. The greenback has been under pressure after recent data suggested the US labour market is losing momentum, keeping investors uncertain about the timing of the next interest rate cut by the Federal Reserve.
The euro was trading near $1.1751 during Asian hours, not far from the 12-week high touched in the previous session. Markets are now looking ahead to the European Central Bank’s policy decision due on Thursday, where rates are expected to remain unchanged.
The dollar index, which measures the US currency against six major peers, stood near 98.19. The index has fallen around 9.5 percent so far this year, putting it on track for its sharpest annual drop since 2017.
Recap of Tuesday’s session
In Tuesday’s interbank trade, the rupee posted a marginal gain of less than one paisa to close at 280.30 per dollar. The currency moved in an extremely narrow range, with both the intraday high and low recorded at the same level.
In the open market, exchange companies quoted the dollar at around 280.50 for buying and 281.35 for selling.
Against other major currencies, the rupee weakened across the board. It lost ground to the euro, pound sterling, Swiss franc, Japanese yen and Chinese yuan. The local unit also slipped slightly against the Saudi riyal and the UAE dirham.
