Rupee registers gain against US dollar

Business Recorder reported that the rupee firmed slightly against the US dollar on Monday, settling at 277.40 in the interbank market. That level was Rs0.01 stronger than Friday's close of 277.41. In the open market, the local unit gained 4 paise on buying and 6 paise on selling, finishing at Rs278.25 and Rs279.09 per dollar.

Abroad, the greenback lost ground even though traders raised bets on a US rate increase, as Middle East tensions fed inflation fears that could push central banks to tighten. Markets priced roughly a 57% chance that the Federal Reserve raises rates this month, and the dollar index slipped 0.07% to 99.09. Investor shifts toward the Japanese yen, along with concern over growing US debt and policy uncertainty, also put pressure on the currency.

Oil prices hovered near six-week highs, with Brent climbing $1.19 to $97.47 a barrel as of 1214 GMT, while US West Texas Intermediate held near $92.26 a barrel. Back-and-forth attacks involving the US and Iran on ships near the Strait of Hormuz have kept regional crude flows low.