The Pakistani rupee inched higher against the US dollar on Wednesday, reflecting positive momentum in the inter-bank market, while the Indian rupee showed signs of recovery despite global headwinds.
By 10am, the rupee was trading at 281.47, gaining Re0.25 or 0.09% compared to the previous day’s closing rate of 281.72. The improvement came even as most Asian currencies weakened against a stronger dollar.
In India, the local currency was expected to open in the 88.04 to 88.08 range against the greenback, slightly stronger than Tuesday’s 88.15. Traders noted that the brief climb past 87.95, a resistance level, indicated easing pressure on the Indian rupee. Optimism was supported by remarks from India’s commerce minister, who expressed confidence that a trade pact with the US could be finalised by November.
The dollar’s strength was evident across Asia after a 0.66% rise on Tuesday. Analysts said global risk sentiment remained fragile, with concerns over rising bond yields in Europe and the US weighing on equities.
Oil markets, another critical factor for South Asia, held steady. Brent crude traded at $69.13, while WTI crude rose marginally to $65.63. Sanctions-driven supply concerns had lifted oil more than 1% in the prior session.
The parallel performance of the Pakistani and Indian currencies highlights the mixed regional outlook. While the rupee’s gains show stability in Pakistan’s forex market, both economies remain exposed to external shocks tied to global dollar strength and energy costs.