Rupee edges up to 276.87 against US dollar in interbank market
- The rupee gained three paise against the dollar, improving from Monday’s close of 276.90.
- Open-market dollar rates closed at Rs277.52 for buying and Rs278.63 for selling.
- Brent crude touched a five-month high as tensions in the Middle East unsettled global markets.
The Pakistani rupee posted a modest gain against the US dollar on Tuesday, closing at 276.87 in the interbank market compared with 276.90 in the previous session.
The three-paisa improvement came as international currency markets remained cautious, with a slight recovery in investor confidence supporting higher-yielding currencies while political unrest in Europe weighed on sentiment. Interbank dollar buying and selling rates stood at Rs276.87 and Rs277.07, respectively.
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In the open market, the rupee strengthened by five paise on the buying side and one paisa on the selling side against the dollar. The US currency ended the session at Rs277.52 for buying and Rs278.63 for selling.
The rupee weakened against the euro, losing eight paise for buying and 21 paise for selling. The European currency closed at Rs310.89 and Rs313.89, respectively.
Rates for the UAE dirham remained unchanged at Rs75.60 for buying and Rs76.20 for selling. The Saudi riyal held steady at Rs73.92 for buying, while its selling rate increased by two paise to Rs74.49.
Globally, the euro traded little changed at $1.1216 during Tuesday’s Asian session, while the British pound gained 0.1% to $1.3308. The Australian and New Zealand dollars also edged up 0.1%, reaching $0.6986 and $0.5668, respectively.
The US dollar was flat against the Japanese yen at 158.56 ahead of an auction of Japan’s 20-year government bonds. The dollar index, which tracks the greenback against six major currencies, had risen 0.2% to 101.98 on Monday, ending two consecutive sessions of losses.
Political developments in Europe added to market uncertainty. French authorities imposed curfews in several cities on Monday following nationwide anti-government protests, creating further turmoil during President Emmanuel Macron’s final months in office. Italy’s government announced plans to deploy 500 troops after two days of unrest.
The yield gap between French and German 10-year government bonds widened by 9.9 basis points on Monday to 147.3 basis points. The US 10-year Treasury yield remained steady at 5.131%.
Meanwhile, oil prices climbed on Tuesday as traders factored in risks to energy supplies following Houthi claims of attacks on Saudi infrastructure and reports of attacks on vessels in the Gulf.
Yemen’s Houthis said on Monday that they had targeted Saudi energy, airport and military facilities, including an Aramco site in Yanbu, the Shaybah oilfield, Riyadh’s King Khalid International Airport and Abha airport. Saudi authorities did not immediately confirm the claims, and Reuters could not independently verify them.
Brent crude futures reached $111.75 a barrel, their highest level since May. By 1120 GMT, the benchmark was trading at $111.20, up $1.65, or 1.5%.
