The Pakistani rupee recorded an increase against the US dollar, appreciating 0.17% during the opening hours of trading in the inter-bank market on Tuesday.
At 10:10am, the rupee was hovering at 282.73, an increase of Re0.48, in the inter-bank market.
On Monday, the rupee recorded a slight gain to settle at 283.21 against the US dollar.
In a related development, Pakistan borrowed $4.285 billion from multiple financing sources during the first five months (July-November) of the current fiscal year 2023-24, compared to $5.114 billion borrowed during the same period of 2022-23, revealed data of the Economic Affairs Division (EAD).
Internationally, the US dollar dipped 0.3% against the yen, and stood not too far from a four-month high of 140.95 hit last week.
Elsewhere, the greenback languished near roughly five-month lows against the Australian and New Zealand dollars, as the risk-sensitive currencies got a leg up on the prospect that the US Federal Reserve could begin easing interest rates as soon as early next year.
While some Fed officials have pushed back against market expectations of how soon the Federal Open Market Committee (FOMC) could cut rates, those comments have done little to sway market pricing and stem the greenback’s decline.
Chicago Fed President Austan Goolsbee on Monday said the Fed is not pre-committing to cutting rates soon and swiftly, and the jump in market expectations that it will do so is at odds with how the US central bank functions.
Oil prices, a key indicator of currency parity, were mixed on Tuesday, with the US benchmark dipping while Brent extended gains from the previous session, as attacks by Yemen’s Iran-aligned Houthi on ships in the Red Sea disrupted maritime trade and forced companies to reroute vessels.
Brent crude futures rose 10 cents, or 0.13%, to $78.05 a barrel at 0330 GMT. The front-month US West Texas Intermediate crude futures contract, which expires on Tuesday, fell 7 cents to $72.40 a barrel.
This is an intra-day update
