The Pakistani rupee recorded marginal gain against the US dollar, appreciating 0.09% during the opening hours of trading in the inter-bank market on Tuesday.
At 10:15am, the rupee was hovering at 282.27, an increase of Re0.26, in the inter-bank market.
During the previous week, the rupee appreciated 0.25% or Re0.73 against the US dollar in the inter-bank market to settle at 282.53.
It was the sixth consecutive week that the rupee advanced against the dollar, a momentum aided by the announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) on the first review of the $3 billion Stand-by Arrangement (SBA).
Since the announcement of the SLA on November 15, the local unit has gained Rs5.61 or 1.94% against the greenback.
Internationally, the US dollar was trying to find a floor on Tuesday in holiday-thinned trade, pressured by signs that inflation in the world’s largest economy is cooling which will likely give the Federal Reserve room to ease interest rates next year.
Against the greenback, the euro slipped 0.06% to $1.1019 but was not too far from a more than four-month top of $1.1040 hit last week.
The dollar index languished near a five-month low of 101.42 hit last week, and was last at 101.65.
Data released on Friday showed US prices fell in November for the first in more than 3-1/2 years, pushing the annual increase in inflation further below 3% and boosting market expectations of an interest rate cut from the Fed next March.
Oil prices, a key indicator of currency parity, were little changed on Tuesday as investors focused on geopolitical tensions in the Middle East and optimism that the US Federal Reserve would soon start cutting interest rates, lifting global economic growth and fuel demand.
Brent crude futures fell 26 cents, or 0.3%, to $79.13 a barrel by 0115 GMT while US West Texas Intermediate crude was at $73.59 a barrel, up 3 cents.
This is an intra-day update
