KARACHI: The Pakistani rupee demonstrated a 0.18% uptick against the US dollar during the initial trading hours on Tuesday in the inter-bank market.
At 9:50 am, it stood at 285.50, marking an increase of Re0.47. Monday witnessed the rupee’s advancement, settling at 285.97 against the US dollar.
Simultaneously, Pakistan’s Foreign Direct Investment (FDI) showcased a 7% rise in the first four months of fiscal year FY24, according to the State Bank of Pakistan’s report on Monday. The FDI totalled $525 million from July to October in FY24, an increase of $35 million from the corresponding period in FY23, which was $490 million.
On the global front, the US dollar continued its decline against major currencies like the euro and yen. The dollar index hit a 2-1/2-month low of 103.2 on Tuesday after breaking below its 200-day moving average on Monday. The market sentiment suggests minimal chances of a US rate hike in December or the following year, with a 1-in-4 probability of an easing starting in March. The Federal Reserve’s minutes release at 1900 GMT and a speech by European Central Bank President Christine Lagarde headline the day.
In the realm of oil prices, the market observed a reversal from the previous day’s rally. Concerns about weakened global demand amid an economic slowdown overshadowed the prospects of deeper supply cuts by OPEC and its allies, including Russia. Brent crude futures dropped by 0.4% to $81.96 a barrel, while U.S. West Texas Intermediate crude stood at $77.50 a barrel, down 0.4% as well.
