The Pakistani rupee continued its marginal recovery against the US dollar on Tuesday, appreciating by three paisa to close at Rs276.87 in the interbank market, while the local currency recorded mixed movements against major foreign currencies in the open market.
According to interbank market data, the rupee gained 0.01% against the greenback, compared with Monday’s closing rate of Rs276.90. The dollar’s buying rate stood at Rs276.87, while its selling rate was recorded at Rs277.07.
In the open market, the rupee strengthened by five paisa against the dollar for buying and one paisa for selling, closing at Rs277.52 and Rs278.63, respectively.
However, the local currency weakened against the euro, losing eight paisa on the buying side and 21 paisa on the selling side. The euro closed at Rs310.89 for buying and Rs313.89 for selling.
Against the UAE dirham, the rupee remained unchanged, with buying and selling rates standing at Rs75.60 and Rs76.20, respectively. Against the Saudi riyal, the local currency remained unchanged for buying at Rs73.92 but lost two paisa on the selling side to close at Rs74.49.
In international markets, the US dollar traded unevenly against major currencies on Tuesday as a modest improvement in investor confidence supported higher-yielding currencies, while political uncertainty in Europe continued to influence market sentiment.
The euro traded at $1.1216, while the British pound rose 0.1% to $1.3308. The Australian dollar gained 0.1% to $0.6986, and the New Zealand dollar advanced 0.1% to $0.5668. Against the Japanese yen, the dollar remained flat at 158.56 yen.
Political unrest in France and Italy added to uncertainty in European markets. French authorities imposed curfews in several cities following nationwide anti-government protests, while the Italian government announced plans to deploy 500 troops after two days of unrest.
The US dollar index, which measures the greenback against a basket of six major currencies, rose 0.2% to 101.98 on Monday, ending a two-day losing streak.
Meanwhile, rising international oil prices added another factor to currency-market considerations. Brent crude futures climbed to $111.75 per barrel, their highest level since May, before trading at $111.20 per barrel, up $1.65 or 1.5%, as of 1120 GMT on Tuesday.
Oil prices advanced amid concerns over geopolitical risks following Houthi claims of attacks on Saudi energy infrastructure, airports and military targets, as well as reports of vessel attacks in the Gulf. Saudi authorities had not immediately confirmed the Houthi claims, while the reports could not be independently verified by Reuters.