Pakistani rupee demonstrated resilience, appreciating by 0.18% against the US dollar in the inter-bank market. As of 10 am, the rupee stood at 283.40, marking an increase of Re0.50.
This positive shift follows a slight decline recorded on Monday when the rupee settled at 283.90 against the US dollar.
Internationally, the US dollar’s performance was influenced by the anticipation of US inflation data and several central bank meetings. Overnight, the dollar experienced a 0.9% rise against the yen, reaching 145.96 yen—approximately 3% higher than the previous week’s low. This surge followed remarks from Bank of Japan Governor Kazuo Ueda, suggesting a potential policy shift.
While other currency pairs remained relatively stable, the euro stood at $1.0765. Market attention is now directed toward US inflation data and the Federal Reserve’s policy decision scheduled for Wednesday.
The dollar’s recent slide, triggered by October’s benign US inflation report, found support in upbeat job data released on Friday. With the Federal Reserve expected to maintain rates at 5.25%-5.50% this week, focus shifts to the dot plots for rates and Chair Jerome Powell’s press conference.
Although expectations for a March rate cut have diminished, there is speculation of a cut in May, with odds exceeding 3/4.
In the realm of economic indicators, oil prices saw a modest uptick on Tuesday. However, investor caution prevailed ahead of crucial interest rate decisions and inflation data releases. Persistent concerns about supply surplus and slower demand growth restrained significant gains in oil prices, maintaining a delicate balance in currency parity considerations.
