Intra-day update: rupee sees marginal gain against US dollar – Markets

The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.04% during the opening hours of trading in the inter-bank market on Thursday.

At 10am, the rupee was hovering at 278, a gain of Re0.10, against the greenback.

On Wednesday, the rupee closed at 278.10, up by Re0.02.

In a key development, the Petroleum Division proposed a six months’ extension in signing of Pakistan Oil Refining Policy for upgradation of existing/Brownfield refineries as a few refineries are still not ready to sign the policy.

Prime Minister Shehbaz Sharif had also directed the Petroleum Division to arrange the signing ceremony in his presence, but the latter has so far not been successful in firming up the date for the signing ceremony.

Globally, the US dollar held tight ranges against most peers on Thursday as traders awaited key US inflation data for cues on Federal Reserve policy, while the focus on the massive interest rate gap between Japan and the US helped it make some gains on the yen.

Focus swings to the April US producer price index (PPI) and the consumer price index (CPI) out next week, which markets will watch for signs that inflation has resumed its downward trend towards the Fed’s 2% target rate.

The dollar index rose to 0.05% to 105.55, while the Japanese yen was mostly flat at 155.59 per greenback. Sterling was down 0.07% at $1.2487 ahead of the Bank of England’s policy decision later on Thursday.

Oil prices, a key indicator of currency parity, rose in early trade on Thursday as shrinking US crude inventories signaled tighter supply, and amid rising hopes that the Federal Reserve would cut interest rates by the end of the year.

Brent crude futures for July rose 23 cents to $83.81 a barrel by 0033 GMT. US West Texas Intermediate crude for June was up 29 cents to $79.28 per barrel.

Crude inventories dropped last week by 1.4 million barrels to 459.5 million barrels, according to the Energy Information Administration, more than analysts’ expectations in a Reuters poll for a 1.1 million-barrel draw as refinery activity increased.

This is an intra-day update