The Pakistani rupee strengthened slightly against the US dollar during early trading hours on Wednesday, November 5. The local currency appreciated by 0.05% in the inter-bank market. At 10 a.m., the rupee was trading at 280.73, gaining 14 paisas (Rs. 0.14) against the greenback. On Tuesday, it had closed at 280.87.
Globally, the Japanese yen and the US dollar attracted demand as a sharp tech-led selloff on Wall Street extended into Asia. Meanwhile, risk-sensitive currencies like the Australian and New Zealand dollars weakened further.
The Australian dollar fell 0.8% against the greenback on Tuesday, while the New Zealand dollar dropped to a nearly seven-month low after its unemployment rate rose to the highest level since 2016. Against the Aussie, New Zealand’s currency hit a 12-year trough.
Sterling also hovered near a seven-month low after UK finance minister Rachel Reeves signalled possible broad tax increases in her upcoming budget.
The US dollar index, which measures the dollar against the euro, yen, sterling, and three other major currencies, remained steady at 100.18. It briefly touched 100.25, its highest level since August 1. The greenback continued to gain strength as divisions within the Federal Reserve board reduced the likelihood of an interest rate cut in December.
Oil prices dropped on Wednesday amid a global market selloff that raised concerns over economic growth and fuel demand. A stronger dollar and reports of rising US crude stockpiles added to the downward pressure.
Brent crude futures fell 36 cents, or 0.56%, to $64.08 per barrel by 0221 GMT / 7:21 a.m. PKT. US West Texas Intermediate (WTI) crude declined 40 cents, or 0.66%, to $60.16. Both extended their losses from Tuesday.