Rupee Continues to Climb Against US Dollar

The Pakistani rupee extended its gains against the US dollar, appreciating by 0.12% in early trading on Tuesday in the inter-bank market.

At 10:00 AM, the rupee was recorded at 282.33, reflecting an increase of Re0.33. The currency had closed at 282.66 on Monday.

Globally, the US dollar experienced fluctuations on Tuesday, influenced by increasing expectations of interest rate cuts by the Federal Reserve and investors’ evaluations of the broader economic effects of recently implemented US tariffs.

The dollar faced ongoing pressure following the US jobs report released on Friday, which revealed weaknesses in the labor market. This prompted traders to anticipate rate cuts in the near future.

The dismissal of a top statistics official by US President Donald Trump, along with the resignation of Federal Reserve Governor Adriana Kugler, heightened market uncertainty and triggered a sharp decline in the dollar on Friday.

The US currency regained some stability on Monday but exhibited weakness in early trading on Tuesday. The euro was last priced at $1.1579, while the British pound stood at $1.3298.

The dollar index, which assesses the US currency’s strength against six other major currencies, was at 98.688, after hitting a one-week low earlier in the day.

Currently, traders are estimating a 94.4% likelihood of the Federal Reserve reducing rates at its upcoming meeting in September, a significant increase from the 63% probability assessed the previous week, according to the CME FedWatch tool.

Oil prices, an important indicator of currency valuation, remained relatively stable on Tuesday after a three-day decline driven by growing concerns about oversupply. This followed OPEC+’s agreement to another substantial output increase in September. However, potential disruptions to Russian supply offered some support to the market.

Brent crude futures were steady at $68.76 a barrel as of 0036 GMT, while US West Texas Intermediate crude was at $66.27 a barrel, down 2 cents, or 0.03%. Both contracts experienced declines of over 1% in the previous session, reaching their lowest levels in a week.

This information reflects an intra-day market update.