Rupee gains marginally against USD

Pakistan's rupee recorded marginal gains against the US dollar, appreciating 0.05%.

At around 1:10pm, the rupee was being quoted at 223.30, after a gain of Re0.12 during intra-day trading. Rupee ended its sevensession losing streak against the US dollar to settle at 223.42 after an improvement of Re0.24 or 0.11%.

In a key development, Nomura, a Japan-based global financial services group, warned that Pakistan among other countries is now at a high risk of currency crisis. The Japanese bank said that 22 of the 32 countries covered by its inhouse "Damocles" warning system have seen their risk rise since its last update since May. It meant the sum of the scores generated on all 32 by the model had increased sharply to 2,234 from 1,744 since May. Internationally, the US dollar was steady on Wednesday as investors tempered their risk appetites ahead of the release of minutes of the Federal Reserve's policy meeting that could offer clues on the outlook for inflation and interest rates.

The Fed on Wednesday will release the minutes from its most recent meeting, with investors looking for any sign of discussions around moderating the pace of interest rate hikes.