Pakistani rupee demonstrated a slight appreciation of 0.12% against the US dollar during the opening hours in the inter-bank market on Tuesday. At 10:15 am, the rupee stood at 280.93, marking an increase of Re0.35.
The previous day had also witnessed a marginal gain for the rupee, settling at 281.28 against the US dollar. This trend suggests a gradual strengthening of the Pakistani currency.
Globally, the US dollar’s upward momentum took a pause on Tuesday as traders solidified their expectations for multiple Federal Reserve rate cuts in the coming year. This anticipation stems from the belief that inflation in the US is slowing down, as indicated by the latest New York Fed’s Survey of Consumer Expectations, revealing a drop in US consumers’ short-term inflation projections to the lowest level in nearly three years.
Bitcoin, in the realm of cryptocurrencies, maintained its position close to the strongest level since April 2022. This surge is attributed to growing expectations of imminent approvals of spot bitcoin exchange-traded funds (ETF), highlighting the evolving landscape of digital currencies.
Market watchers eagerly await the upcoming US inflation reading later in the week, which is expected to provide additional insights into the Federal Reserve’s potential rate adjustments. Futures currently point to approximately 140 basis points of easing priced in for the Fed this year.
The US dollar, measured against a basket of currencies, experienced a slight 0.08% decline, settling at 102.22. This minor shift follows a 1% rise observed the previous week.
Oil prices, crucial indicators of currency parity, exhibited a modest rise on Tuesday after a decline in the previous session. Market considerations include Middle East tensions, demand concerns, and increased OPEC supply. Brent crude futures rose 18 cents to $76.30 a barrel, while U.S. West Texas Intermediate crude futures inched up 0.1% to $70.83 a barrel. The previous day had seen both benchmarks decline by over 3% and 4%, respectively, attributed to sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output.
