Rupee’s Stability Against US Dollar in Early Trading

During the initial trading hours on Tuesday, the Pakistani rupee exhibited considerable stability relative to the US dollar.

At approximately 10:30 am, the rupee was trading at 281.23, reflecting a marginal decrease of Re0.01 against the US dollar in the inter-bank market.

The rupee concluded the previous day, Monday, at a rate of 281.22.

Global Market Overview

On the international stage, the US dollar faced challenges on Tuesday, influenced by an extraordinary two-day surge in Taiwan’s currency that extended to other regional currencies, underscoring the US dollar’s vulnerabilities.

Earlier in the day, Hong Kong’s monetary authority intervened by purchasing $7.8 billion (HK$60.5 billion) to maintain its currency’s peg to the US dollar and prevent further appreciation.

Furthermore, investors are closely monitoring advancements in trade discussions with the US and indications of improved relations between China and the US, beyond mere verbal assurances from officials.

The Taiwan dollar previously surged to a three-year peak of 29.59 per dollar, marking an 8% increase over two days, coinciding with the conclusion of US-Taiwan trade negotiations in Washington. It was last recorded steady at 30.02 per US dollar.

The dollar index, measuring the dollar against a basket of currencies, increased by 0.2% to reach 100.04, following a substantial monthly decline of 4.3% last month, its largest in over two years.

The Federal Reserve is scheduled to announce its policy decision on Wednesday, with expectations of maintaining current interest rates. However, this meeting might represent the final instance of such straightforward policy outcomes.

Oil Market Update

Oil prices, a crucial indicator of currency values, stabilized on Tuesday after reaching four-year lows in the prior session. These lows were triggered by OPEC+’s decision to accelerate output increases, raising concerns about potential oversupply amid worries about demand due to US tariffs.

Brent crude futures saw a rise of 10 cents, reaching $60.33 a barrel by 0050 GMT, while US West Texas Intermediate crude also increased by 10 cents, reaching $57.23 a barrel.

Both benchmarks had previously settled at their lowest levels since February 2021 on Monday.

This update provides an overview of intra-day market activities.