The Pakistani rupee maintained a steady footing in the interbank market on Thursday, extending its marginal gains against the US dollar to finish slightly higher. The local unit closed the trading session at 277.10, picking up Re0.01 against the greenback compared to Wednesday’s settlement of 277.11.
“The Pakistani rupee settled at 277.10 against the US dollar in the interbank market, holding firm despite persistent strength in the greenback across global markets.”
In international currency markets, the US dollar hovered near a two-month high on Thursday, supported by an extended rise in US Treasury yields. This upward momentum has been partly fueled by concerns over persistent global price pressures stemming from the ongoing conflict in the Middle East. While recent data showed US inflation rose less than expected in August—alongside downward revisions to July’s reading that reduced expectations for a Federal Reserve rate hike this month—a surge in eurozone inflation underscores the threat that higher energy prices continue to pose to the global economy.
“A resilient US dollar maintained its grip near a two-month high at 101.48, anchored by elevated Treasury yields and persistent global inflation concerns.”
Major international currencies remained under pressure against the greenback. In the early Asian session, the euro traded marginally lower at $1.1330 after clocking a loss of nearly 2.5% in September—its largest monthly drop since July 2025—weighed down by Europe’s debt and energy worries. Meanwhile, the British pound held flat at $1.3264 after sliding 2.1% last month. Against a broader basket of currencies, the US dollar index stood at 101.48 after rising 2% across September.
Oil prices, a key indicator of currency parity, fell 1% on Thursday as recovering crude exports from the Gulf and a surprise build in US inventories eased immediate supply concerns. Investors also weighed renewed US-Iran diplomatic efforts aimed at ending the conflict in the Middle East. Brent crude futures fell 1.1% to $96.92 a barrel by 0420 GMT, while US West Texas Intermediate (WTI) crude dropped 1.4% to $89.18 a barrel. Both benchmarks had risen by roughly $1 a barrel on Wednesday, with Brent recording a monthly gain of around 14% in September and WTI increasing by about 5%.
“A 1% pullback in international crude benchmarks offered breathing room for currency parity as recovering Gulf exports and diplomatic efforts eased supply concerns.”