The Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.09% during the opening hours of trading in the inter-bank market on Tuesday.
At 10:45am, the currency was hovering at 278.33 for a gain of Re0.24 against the greenback.
On Monday, the rupee had settled at 278.57, according to the State Bank of Pakistan (SBP).
Internationally, the US dollar was on the front foot on Tuesday as the prospect of higher-for-longer US interest rates remained top of investors’ minds, leaving other currencies struggling near milestone lows.
In a holiday-curtailed week, trading volumes are likely to thin out as the year-end approaches. The lack of major economic data releases also means the rates theme is likely to remain the main driver of moves in the foreign exchange market.
Against a basket of currencies, the US dollar was perched near a two-year peak of 108.54. It was last at 108.10.
While a benign US inflation reading on Friday eased some concerns about the pace of Fed cuts next year, markets are still pricing in just about 35 basis points worth of easing for 2025, in turn underpinning the dollar.
Oil prices, a key indicator of currency parity, were up on Tuesday in thin trade ahead of the Christmas Day holiday, with prices supported by U.S. economic data and rising oil demand in India, the world’s third-largest oil importer.
Brent crude futures were up 33 cents, or 0.45%, to $72.95 a barrel and US West Texas Intermediate crude futures rose 29 cents, or 0.42%, to $69.53 a barrel at 0114 GMT.
New orders for key US -manufactured capital goods surged in November amid strong demand for machinery, while new home sales also rebounded in a sign that the US economy is on a solid footing towards the year-end.
The United States is the world’s top oil consumer.
This is an intra-day update
American Dollar Exchange Rate