The Pakistani rupee saw a marginal decline against the US dollar, depreciating 0.04% in the interbank market on Tuesday.
At the close, the currency settled at 278.27, with a loss of Re 0.10 against the dollar.
On Monday, the rupee had stabilized at 278.17, according to the State Bank of Pakistan (SBP).
Globally, the US dollar remained firm and near recent highs on Tuesday, on the eve of an expected US interest rate cut, as traders raised assumptions on long-term rates.
The euro, which is heading for an annual drop of almost 5% against the dollar, was not far from the year’s lows of $1.0518.
The gap between the US and German 10-year yields is 216 basis points and has widened almost 70 basis points in three months.
The Federal Reserve will announce its interest rate decision on Wednesday, and interest rate futures imply a 94% chance of an increase, even as service sector activity jumped to a three-year high, according to a S&P Global purchasing managers survey.
According to the CME FedWatch tool, after a cut on Wednesday, markets see around a 37% chance of a 25bp cut or none throughout 2025, up from around 21% a week earlier.
In addition to the Federal Reserve, the Bank of Japan, the Bank of England and the Bank of Norway meet this week and are expected to hold firm on Thursday, while the Riksbank is expected to cut rates, perhaps by 50 points. basics.
Oil prices, a key indicator of monetary parity, fell on Tuesday as economic data from China renewed concerns about demand, while investors remained cautious ahead of the US Federal Reserve’s interest rate decision. Joined.
U.S. West Texas Intermediate crude was down 11 cents at $70.60 a barrel by 0802 GMT, while Brent crude futures were down 2 cents at $73.89 a barrel.
Interbank market rates for the dollar on Tuesday
OFFER Rs 278.27
OFFER Rs 278.47
Open market movement
In the open market, PKR remained unchanged for buying and lost 9 paise for selling against the USD, closing at 277.35 and 279.23 respectively.
Against the euro, PKR gained 41 paise for buying and 37 paise for selling, closing at 290.16 and 292.38 respectively.
Against the UAE dirham, PKR gained 3 paise for buying and remained unchanged for selling, closing at 75.42 and 76.00, respectively.
Against the Saudi Riyal, PKR gained 2 paise for buying and remained unchanged for selling, closing at 73.71 and 74.25, respectively.
Dollar exchange rates in the open market on Tuesday
OFFER Rs 277.35
OFFER Rs 279.23
