Rupee recovers seven paisas against dollar as commodity prices eased

Pakistani rupee appreciated by seven paisas (+0.04 percent) against the US dollar as global prices of crude oil, gold and some other commodities eased on Wednesday.

The State Bank of Pakistan said in a statement that the dollar opened at Rs176.23 in the interbank market and closed at Rs176.16. The rupee witnessed a trading range of 10 paisas during the session, showing the intraday high bid of 176.25 and low offer of 176.15. Within the open market, the rupee was traded at 176.50/177.50 per dollar, showing a decrease of 20 paisas in selling rate.

On the other hand, the US Dollar Index (DXY), which gauges the greenback against a basket of its main competitors, traded once again on the defensive and shed ground for the second session in a row. The index finished 0.07 percent lower at 96.07, where it remained in Asia trade on Wednesday.The corrective downside in the buck comes amidst further recovery in US treasury bond yields across the curve.

Overall, the rupee shed 30 paisas against the American currency during the last three days of this week, while it has depreciated by Rs18.73 during the ongoing fiscal year 2021-22.

However, the local unit has appreciated by 35 paisas during the current year 2022.

The currency dealers said that a declining trend in the global crude oil prices helped the local currency show some gains. They said that the reports about escalation in Russia-Ukraine tensions surged the oil prices in the international markets, which pressured the Pakistani rupee. However, as crude oil prices remained steady on Wednesday, a modest appreciation in PKR has been witnessed.


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