Intra-day update: rupee remains largely stable against US dollar
- Currency hovers at 277-278 level in inter-bank market against the US dollar
The Pakistani rupee remained largely stable against the US dollar, during the opening hours of trading in the inter-bank market on Wednesday.
At 10:20am, the currency was hovering at 277.73, a gain of Re0.01 against the US dollar.
On Tuesday, the rupee had settled at 277.74, according to the State Bank of Pakistan (SBP).
Globally, the Australian and New Zealand dollars slumped on Wednesday as scepticism grew about top trading partner China’s stimulus, while the greenback hovered near two-month peaks versus major peers on wagers US interest rate cuts will be gradual.
The US dollar index, which measures the currency against six major rivals, was steady at 103.25, sticking close to Monday’s high of 103.61, a level previously not seen since Aug. 8.
Recent data indicating a resilient economy coupled with slightly hotter-than-expected inflation in September has led traders to trim bets for aggressive Federal Reserve easing.
Traders currently lay about 94% odds for a 25 basis-point cut when the Fed next decides policy on Nov. 7, with about 6% probability of no change, according to CME Group’s FedWatch Tool.
Atlanta Federal Reserve President Raphael Bostic said he has pencilled in just one more interest rate reduction of 25 basis points this year. Investors are pricing two 25 bps rate cuts this year .
Oil prices, a key indicator of currency parity, inched higher in early trade on Wednesday on uncertainty over what may happen next in the Middle East conflict, after demand concerns knocked the market to its lowest since early October in the previous session.
Brent crude oil futures rose 14 cents, or 0.2%, to $74.39 a barrel by 0250 GMT. US West Texas Intermediate crude futures climbed 19 cents, or 0.3%, to $70.77 per barrel.
Oil prices tumbled more than 4% to a near two-week low on Tuesday due to a weaker demand outlook and after a media report said Israel would not strike Iranian nuclear and oil sites, easing fears of a supply disruption.
This is an intra-day update
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