KARACHI: The Pakistani rupee recorded a slight gain against the US dollar on Tuesday, appreciating by 0.04% in the inter-bank market.

The local currency closed at 277.87, reflecting a modest increase of Re0.10 compared to the previous session when it stood at 277.97, according to the State Bank of Pakistan (SBP). Despite the rupee’s minor improvement, global market conditions remained volatile. Internationally, the US dollar showed resilience, bolstered by political instability in France, which weighed on the euro, and tariff concerns that led to a decline in China’s currency, pushing the yuan to a one-year low. Investors are closely watching the upcoming US employment data set for release on Friday, which could influence expectations about potential interest rate cuts by the Federal Reserve. Job opening figures are also expected later on Tuesday. Historically, the US dollar tends to weaken in December, as companies typically purchase foreign currencies for year-end transactions.

However, this year, traders are cautious, keeping the dollar firm in anticipation of the new US administration under President-elect Donald Trump. Oil prices, which often influence currency values, rose nearly 1% on Tuesday ahead of the OPEC+ meeting later this week. Brent crude futures increased by 66 cents (0.92%) to $72.49 a barrel, while US West Texas Intermediate crude climbed by 63 cents (0.93%) to $68.73. There are expectations that OPEC+ will extend its current output cuts until the end of the first quarter during its meeting on December 5. In the open market, the rupee gained 7 paise for buying and 11 paise for selling, closing at 277.17 and 278.87, respectively, against the US dollar. The local currency also gained against the euro, while it saw slight losses against the UAE dirham and Saudi riyal.