Rupee inches up against US dollar

ISLAMABAD: The Pakistani rupee registered marginal gain against the US dollar in the inter-bank market on Tuesday.

At close, the local currency settled at 279.36, a gain of Re0.01 against the greenback. On Monday, the local unit closed at 279.37.

Internationally, the US dollar lost some of its safe-haven appeal on speculation that the war in the Middle East could prove limited on Tuesday, pulling down skyrocketing oil prices and boosting risk assets.

At 157.73 yen and $1.1632 per euro, the greenback was firm in early Asia trade, but it has retreated from day-earlier highs after US President Donald Trump said war against Iran was “very complete.” Washington was “very far ahead” of his initial four- to five-week time estimate, he told CBS News.

The comments were quickly rejected as “nonsense” by Iran’s Revolutionary Guards, but they seemed to hold traders back from deepening worries about ⁠an oil shock and put them in a wait-and-watch stance.

The risk-sensitive Australian dollar, which has loitered around 70 cents since war broke out, steadied at around $0.7068.

The dollar has been traders’ shelter-of-choice as ⁠US and Israeli attacks on Iran have all but frozen oil and gas exports through the Strait of Hormuz, sending energy prices soaring.

Investors are worried that it could curtail global growth by acting as a tax on business and consumption, while at the same time pushing central banks away from easing rates. Staff Report