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 hovering at 278.45, a gain of Re0.03 against the greenback.
The rupee settled at 278.48 on Monday, according to the State Bank of Pakistan (SBP).
Internationally, the US dollar was firm on the last trading day of the year, poised to clock strong gains in 2024 against most currencies as investors prepared for fewer US rate cuts and the incoming Trump administration’s policies.
The US dollar’s ascent, buoyed by rising Treasury yields, has pushed the yen toward its lowest levels since July, when the Japanese authorities last intervened. On Tuesday, it was at 157.02 per US dollar, on course for a 10% drop in 2024, its fourth straight year of decline against the dollar.
That has left the US dollar index, which measures the US currency versus six other major units, at 108.06, not far from the two-year high it touched this month.
The index has risen 6.6% in 2024 as traders cut back on bets of deep rate cuts next year.
The Federal Reserve shocked markets earlier this month by cutting their interest-rate forecast for 2025 to 50 basis points of cuts, from 100 basis points, wary of stubbornly high inflation.
Oil prices, a key indicator of currency parity, rose in early trade on Tuesday after data showed China’s manufacturing activity expanded in December, but for a second consecutive year oil was on track to end lower due to demand concerns in top consuming countries.
Brent crude futures rose 47 cents, or 0.7%, to $74.46 a barrel as of 0130 GMT.
US West Texas Intermediate crude gained 49 cents, also 0.7%, to $71.48 a barrel. For the year, Brent declined 3.2%, while WTI was down 0.6%.
This is an intra-day update
American Dollar Exchange Rate