Rupee records gain against US dollar

According to Business Recorder, the rupee firmed slightly against the US dollar in the interbank market on Thursday, closing at 277.17. That represented a gain of Rs0.03, lifting the currency from the 277.20 level recorded on Wednesday. The move was only 0.01 per cent, but it extended a run of small gains for the local unit.

The informal market told a similar story, with the buying rate at 278.12 and the selling rate at 279.20 on Thursday. Against the euro, the rupee strengthened by more than Rs1 on both the buying and selling sides, closing at 316.43 and 319.72. Against the UAE dirham and the Saudi riyal, the changes were marginal.

Globally, the dollar held close to a two-month high after a stronger manufacturing reading revived concerns about inflation. A weak auction of five-year Treasury notes lifted yields on those bonds above 5 per cent, a level not seen since 2007. Oil rose more than 1 per cent on Thursday as US-Iran talks showed little progress, and traders now price in nearly a 70 per cent chance of another US rate increase in October, up from 50 per cent a week earlier.