Rupee Inches Higher Against US Dollar Amid Global Market Shifts
The Pakistani rupee gained slightly against the US dollar on Tuesday. It appreciated 0.08% during early inter-bank trading. At 10 a.m., the rupee traded at 281.03, rising Re0.22 from Monday’s close of 281.25.
The small increase brought a sense of optimism to local traders. They closely monitored movements in major global currencies to gauge market direction.
Global Currency Movements
The Japanese yen slipped to a two-month low as political changes unfolded in Japan. Investors reacted to Sanae Takaichi’s party leadership win, expecting a softer fiscal policy. Her victory hinted at a dovish approach compared to her predecessor.
The euro also showed weakness after France’s prime minister stepped down. European Central Bank officials suggested that a rate cut might soon follow to boost growth. As a result, traders remained cautious about the euro’s short-term outlook.
The US dollar index added 0.05% to 98.17, showing continued investor confidence. The euro stood nearly unchanged at $1.1705, reflecting mixed sentiment across European markets.
Oil Holds Steady
Oil prices stayed steady, signaling balanced demand and supply trends. Brent crude gained only 1 cent, reaching $65.48 per barrel. US West Texas Intermediate (WTI) remained flat at $61.69.
The modest price movement followed smaller-than-expected OPEC+ output hikes. However, slowing global demand still worried investors. Both oil benchmarks had risen more than 1% in the previous session, showing some market strength.
Traders now await the US Federal Reserve’s next decision. Analysts expect a 25 basis-point rate cut later this month after data pointed to a weaker labor market.
