Rupee gains against US dollar

According to Business Recorder, the rupee edged up against the US dollar in the interbank market on Monday, closing at 277.15 for a gain of Rs0.01. The close followed a previous week's finish at 277.16, itself Rs0.09 firmer than the 277.25 recorded a week earlier.

Globally, the greenback hovered near a two-month peak as the US-Iran standoff kept oil prices high. The euro and sterling each lost 0.1 per cent against the dollar, trading at $1.1379 and $1.3232 and sitting close to multi-month lows. The dollar index stood at 101.15 and was set to finish September up 1.7 per cent, its best monthly showing since June.

Attention now turns to US data, with the PCE index due Wednesday and non-farm payrolls on Friday, both seen as backing further tightening. Markets are pricing a 65 per cent chance of a Fed rate increase at the October meeting, according to the CME Group FedWatch tool. Oil climbed more than 2 per cent after the US president turned down an Iranian peace proposal aimed at ending the conflict and reopening the Strait of Hormuz, with Brent futures up $2.60 to $106.92 a barrel.