The Pakistani rupee exhibited minimal fluctuation against the US dollar, showing a slight appreciation of 0.01% in the early hours of trading on Thursday in the inter-bank market.
At 10 am, the rupee stood at 278, marking a gain of Re0.04 compared to the US dollar.
On Wednesday, the rupee saw a marginal improvement, settling at 278.04 against the US dollar, as reported by the State Bank of Pakistan.
Internationally, the US dollar strengthened against major currencies on Thursday following remarks by a Federal Reserve official indicating a reluctance to cut rates amid persistent inflation concerns. Traders also braced for pivotal economic data.
Federal Reserve Governor Christopher Waller’s comments during late US trading hours on Wednesday suggested a hold on cutting short-term interest rates, citing recent disappointing inflation figures.
The dollar index, which measures the greenback against major peers, showed little change at 104.41, with a 3% increase since the beginning of 2024. Market expectations for the first rate cut at the Fed’s June meeting slightly diminished, currently standing at a 60% chance compared to 67% last week, according to the CME FedWatch tool.
Meanwhile, oil prices, a significant indicator of currency stability, rebounded on Thursday after two consecutive sessions of decline. Investors reconsidered the latest US crude oil and gasoline inventories data, prompting a return to buying activity.
Brent crude futures for May saw an increase of 29 cents, or 0.34%, reaching $86.38 a barrel, while the June contract rose by 28 cents, or 0.33%, to $85.69 at 0041 GMT. The May contract is set to expire on Thursday.
