The Pakistani rupee extended its upward momentum against the US dollar during early trading hours on Wednesday, appreciating 0.07 percent in the inter-bank market amid a slight pullback in the greenback globally.
At 10:00 am, the local currency was being quoted at Rs280.87 against the US dollar, marking an increase of Re0.19 from Tuesday’s closing rate of Rs281.06, according to inter-bank market data.
Dealers attributed the modest gain to a combination of stable inflows, lower import payments, and a softening US dollar in global markets. The rupee has shown relative stability in recent weeks, supported by steady remittances and improved foreign exchange reserves held by the State Bank of Pakistan (SBP).
In international currency markets, the US dollar weakened in early Asian trade on Wednesday, retreating from a one-week high against the Japanese yen as investors rebalanced positions following a sharp drop in gold prices.
Gold slid as much as 2.9 percent to a low of $4,003.39, retracing part of a rally that had pushed the metal to its strongest yearly performance in decades. The US dollar index (DXY), which tracks the currency against six major peers, edged 0.1 percent lower to 98.888 after three consecutive sessions of gains.
The dollar last traded 0.2 percent weaker at 151.67 yen, following data showing that Japan’s exports rose in September for the first time in five months. Political developments in Japan — including Sanae Takaichi’s bid for prime minister and expectations of expansionary fiscal measures — have also weighed on the yen this month, which has fallen 2.5 percent against the dollar.
Meanwhile, oil prices — a key external driver for Pakistan’s exchange rate — strengthened for the second consecutive day, buoyed by sanctions-related supply risks and optimism over a potential US-China trade deal.
As of early Wednesday, Brent crude was trading at $61.50 per barrel, up 0.29 percent, while US West Texas Intermediate (WTI) futures gained 0.37 percent to $57.45. Oil prices had earlier rebounded from a five-month low hit earlier in the week amid concerns over global demand and increased output.
Currency traders expect the rupee to remain range-bound in the near term, with movement largely influenced by import payment pressures, oil price trends, and IMF-related inflows.
