Rupee sees improvement against US dollar

The Pakistani rupee edged higher against the US dollar in the interbank market on Tuesday, closing at 277.30 after a gain of Rs0.01, according to Business Recorder. The local unit had settled at 277.31 on Monday. In the open market, the dollar was quoted at Rs278.16 for buying and Rs279.02 for selling, with the rupee gaining 3 paisa and 11 paisa respectively.

Internationally, the greenback held near a two-week high as oil price gains pushed up Treasury yields and bolstered bets on a Federal Reserve rate increase this week. Markets view a Wednesday hike as close to certain, with a roughly 93% probability priced in, marking the first increase in over three years. The dollar index stood at 99.55, while the euro and sterling were slightly weaker at $1.1538 and $1.3494.

Brent crude futures rose 6 cents to $105.74 a barrel, having reached $108.43 during the session, after attacks on Saudi energy infrastructure left the East-West Pipeline offline. Fresh Houthi attacks on Saudi Arabia and a postponement of Gulf Arab discussions with Iran added to supply concerns. Stock markets also fell, with AI-related shares under pressure, which weakened appetite for risk among investors.