Rupee edges up in early trade as oil prices rebound

News Desk

ISLAMABAD – The Pakistani rupee registered a slight gain against the US dollar during the opening session on Thursday, amid signs of stabilizing global oil markets and growing expectations of interest rate cuts in the United States.

According to interbank market data, the local currency appreciated by 0.08 percent, trading at 282.45 against the greenback by 10:00 AM. It closed at 282.67 on Wednesday.PKR Rises for Ninth Straight Session

Dollar under pressure globally

The US dollar remained subdued against major currencies as weak nonfarm payroll data and growing political uncertainty in Washington have fueled speculation of potential rate cuts by the Federal Reserve.

Traders are closely watching initial jobless claims, which gained attention after disappointing employment data last week. Meanwhile, President Donald Trump’s recent dismissal of the labor statistics head and upcoming nominations to the Fed Board of Governors are also influencing market sentiment.

The dollar index inched up 0.1 percent to 98.259 in early Asian trading, after falling 0.6 percent a day earlier.
The greenback was steady against the Japanese yen at 147.36. The euro slipped 0.1 percent to 1.1654 dollars, after a 0.7 percent rally on hopes of progress in Russia-Ukraine peace talks.

Oil prices support regional currencies

Oil prices, a key external factor influencing the rupee, also rose after five consecutive sessions of losses. Gains were supported by strong US demand indicators and easing fears of further sanctions on Russian crude.

According to Reuters, Brent crude increased by 20 cents (0.3 percent) to 67.09 dollars per barrel, while WTI crude rose 22 cents to 64.57 dollars.

The recovery followed reports of a 3 million-barrel drawdown in US crude inventories, indicating steady demand. Market sentiment was further buoyed by diplomatic developments, with upcoming talks between the US and Russia seen as a potential de-escalation in the Ukraine conflict.

Outlook

The rupee’s marginal gain reflects cautious optimism in the market, supported by firmer oil prices and global dollar weakness. However, analysts say domestic factors like foreign inflows, debt repayments, and monetary policy decisions will continue to guide the rupee’s trajectory in the coming days.

This is an intra-day update. Final figures will be available at market close.