The Indian rupee closed nearly flat against the US dollar, hovering around its over one-month low. The currency's movement was a tug-of-war between modest portfolio inflows and persistent dollar demand from local corporates. Broader Asian currencies also remained largely range-bound, while the dollar index steadied after softer-than-expected US inflation data tempered expectations for aggressive Federal Reserve rate hikes.
However, the market sentiment remains cautious due to escalating geopolitical tensions. Brent crude futures climbed 2% to $86.44 a barrel following renewed US-Iran hostilities and threats to global oil export corridors. Analysts suggest that rising energy prices, including oil and natural gas, will make it challenging for investors to price in a benign inflation environment, potentially influencing central bank policies.
For Pakistan, the rise in international crude oil prices is a critical development, as it directly impacts import costs and domestic inflation, potentially putting upward pressure on the USD/PKR exchange rate and influencing local gold prices.
بحوالہ / Source: www.brecorder.com