Intra-day update: rupee stable against US dollar
- Currency hovers at 277-278 level in inter-bank market
The Pakistani rupee remained largely stable against the US dollar, appreciating 0.01% during the opening hours of trading in the inter-bank market on Tuesday.
At 10am, the currency was at 277.83, a gain of Re0.03 against the greenback.
On Monday, the rupee had settled at 277.86, according to the State Bank of Pakistan (SBP).
Internationally, the yen got some much-needed respite on Tuesday as it steadied on the stronger side of 155 per US dollar thanks to a pullback in the US currency, which ran into profit-taking after a stellar rally that saw it scale a one-year high.
The yen last edged 0.2% higher to 154.40 per dollar, recovering from its fall in the previous session after Bank of Japan Governor Kazuo Ueda stuck to his usual script and failed to offer any hints on whether a rate hike could come in December.
In the broader market, the dollar was on the back foot as it eased further away from last week’s one-year top against a basket of currencies.
The greenback has risen more than 2% for the month thus far, buoyed by reduced expectations of the extent of Federal Reserve rate cuts and on the view that President-elect Donald Trump’s touted policies of tariffs, reduced immigration and debt-funded tax cuts will be inflationary to the US economy.
Oil prices, a key indicator of currency parity, edged up on Tuesday, extending the previous day’s rally driven by a halt in production at Norway’s Johan Sverdrup oilfield, though investors remained cautious amid fears of an escalation in the Russia-Ukraine war.
Brent crude futures for January delivery rose 15 cents, or 0.2%, to $73.45 a barrel by 0430 GMT, while US West Texas Intermediate crude futures for December delivery were at $69.31 a barrel, up 15 cents, or 0.2%. The more active WTI January contract rose 13 cents, or 0.2%, to $69.30.
This is an intra-day update
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