Rupee registers gain against US dollar

Business Recorder reported that the rupee strengthened slightly against the US dollar in the interbank market on Thursday, closing at 277.26. That represented a rise of Rs0.01 against the greenback, following a close of 277.27 on Wednesday. The open-market dollar rate also moved, with buying at 278.11 and selling at 279.07.

The wider backdrop was a stronger greenback abroad. According to the report, the dollar stayed near a seven-week high after the Federal Reserve raised interest rates and signalled further increases in coming months, with new central bank chief Kevin Warsh backing the decision. The dollar index reached 100.33, its firmest level since July 31, and markets now price roughly a 90% chance of another quarter-point Fed hike by year-end.

Other currencies moved as well, with the euro at $1.1456 near a seven-week low and sterling flat at $1.3377 before the Bank of England meeting. The yen hovered near a two-week low at 156.20 per dollar ahead of the Bank of Japan's Friday decision. Brent crude fell 3.64 per cent to $101.98 a barrel, though it stayed above $100 on Middle East concerns.