ISLAMABAD: The Pakistani rupee showed a slight improvement against the US dollar on Wednesday, gaining 0.03% in the inter-bank market.

At the close of trading, the rupee settled at Rs277.85, marking an increase of Re0.08 compared to the previous day’s value of Rs277.93, according to data from the State Bank of Pakistan (SBP). In the open market, the rupee experienced mixed movement against the greenback. It lost 8 paise for buying, settling at Rs277.02, but gained 3 paise for selling, closing at Rs278.80. The rupee also strengthened against other major currencies. Against the Euro, the rupee appreciated by 82 paise, closing at Rs292.68 for buying and Rs295.44 for selling.

Similarly, against the UAE Dirham, the rupee gained 2 paise for buying and 1 paisa for selling, closing at Rs75.25 and Rs75.96, respectively. The Saudi Riyal saw a similar trend, with the rupee gaining 2 paise for buying, closing at Rs73.50, while selling remained unchanged at Rs74.16. On the global stage, the US dollar continued to hover near a six-and-a-half-month peak against major currencies. Bitcoin, after reaching a record high of $89,998 on Tuesday, paused its climb at $87,105.05. The dollar’s strength has been fueled by the anticipation of tax cuts and trade policies under the incoming US administration, led by Republican Donald Trump. Investors are betting on inflationary effects from these policies, which have led to higher US Treasury yields and expectations that the Federal Reserve may slow down its rate cuts.

Oil prices, another key factor affecting currency markets, also saw a slight increase, with Brent crude rising 0.2% to $72.03 per barrel. However, oil prices remained near their lowest levels in two weeks following OPEC’s downgrade of global oil demand growth forecasts for 2024 and 2025.