Rupee registers gain against US dollar

Business Recorder reported that the Pakistani rupee strengthened slightly in Wednesday’s interbank trading, ending at 276.62 per US dollar. That was a rise of Re0.03, or 0.01%, from Tuesday’s closing rate of 276.65.

International currency markets reflected stronger expectations of a US Federal Reserve rate increase next month. The dollar index stood at 102.22, near its strongest level since October 28, after US inflation data exceeded expectations and Fed officials expressed concern about price pressures. Futures put the probability of a 25-basis-point increase at 91.9%, compared with 84% a day earlier.

Oil also moved higher, with Brent gaining $1.04, or 1.1%, to $92.53 a barrel and US West Texas Intermediate adding 67 cents, or 0.8%, to $86.71. Business Recorder linked the crude market’s movement to shifting expectations around the US-Israeli conflict with Iran and concerns over shipping through the Strait of Hormuz.