Rupee gains Re0.03 to close at 277.07 against US dollar

The Pakistani rupee closed at 277.07 against the US dollar in the interbank market on Friday, a gain of Re0.03 from Thursday's settlement of 277.10. The move amounted to an appreciation of about 0.01%, leaving the local unit close to where it traded a day earlier.

The rupee's marginal gain came against a firming dollar. The US currency headed for its third consecutive weekly gain on Friday and sat at a 17-month high, as a bond market rout pushed borrowing costs across the globe to multi-decade peaks amid inflationary fears over higher oil prices. The dollar index, which measures the US currency against six rivals, was at 102.08 and was set for a gain of about 1% for the week, a run it last had in May 2025.

Investors were digesting a steep global bond sell-off on Thursday that sent yields on benchmark US 10-year Treasuries to 5.344%, their highest since 2002. The 10-year yield was last at 5.249% in early trading on Friday, with the rest of the bond market also steadying. Attention has turned to the US payroll report due later on Friday, which could influence the near-term policy outlook. Two of the Federal Reserve's top policymakers this week staked out an unusually clear case for waiting for more data before deciding on another rate increase, and data earlier in the week showing US consumer prices rose less than expected, with downward revisions to the prior month, led traders to rein in wagers on a hike this month.

Elsewhere in currency markets, the euro was at $1.1237, hugging its lowest level since May 2025, dragged by concerns around France's fiscal health, while the yen was steady at 158 per US dollar after Tokyo core inflation accelerated at its fastest pace in 10 months. Oil prices fell more than 2% after reports of talks on additional diesel and crude stock releases, easing concerns over tight global energy supplies. Brent fell $2.57, or 2.51%, to $99.74 a barrel, while West Texas Intermediate dropped $3.53, or 3.8%, to $89.34. Both benchmarks were poised for weekly declines, with Brent down about 4.1% and WTI lower by around 3.2% for the week.