Rupee gains further against US dollar
The Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.01% in the inter-bank market on Tuesday.
At close, the currency settled at 282.42, a gain of Re0.03.
On Monday, rupee closed at 282.45.
Internationally, the US dollar held steady on Tuesday, with markets braced for a key consumer inflation report later in the day that could shape expectations for Federal Reserve interest rate cuts.
The Australian dollar was steady hours before a policy decision by the Reserve Bank of Australia.
The US dollar index - which measures the currency against six counterparts, including the euro and yen - was steady at 98.497 as of 0046 GMT, after advancing 0.5% over the past two sessions.
Prior to that, the dollar had retreated as US President Donald Trump's dovish-leaning pick to replace a Fed governor, and similarly inclined potential candidates for chairman, led traders to increase easing bets.
In addition, Fed officials have sounded increasingly uneasy about the labour market, signalling their as soon as September.
Cooling inflation could cement bets for a reduction next month, but if signs emerge that Trump's tariffs are fuelling price pressures, that might keep the central bank on hold for now.
Traders currently put the odds of a quarter-point cut on September 17 at about 89%. The greenback rose 0.1% to 148.28 yen on Tuesday. The euro was flat at $1.1615.
Oil prices, a key indicator of currency parity, were little changed on Tuesday after the United States and China extended a pause on higher tariffs and data showed a rise in U.S. inflation in July.
Brent crude futures lost 36 cents, or 0.54%, to $66.27 a barrel by 1240 GMT. U.S. West Texas Intermediate crude futures eased by 45 cents, or 0.7%, to $63.51. U.S. President Donald Trump extended a tariff truce with China to November 10, staving off triple-digit duties on Chinese goods as U.S. retailers prepared for the critical end-of-year holiday season.
This raised hopes that an agreement could be reached between the world's two largest economies and avert a virtual trade embargo between them. Tariffs risk slowing global growth, which could sap fuel demand and drag oil prices lower.
Inter-bank market rates for dollar on Tuesday
BID Rs 282.42
OFFER Rs 282.61
Open-market movement
In the open market, the PKR gained 6 paise for buying and remained unchanged for selling against USD, closing at 283.80 and 284.90, respectively.
Against Euro, the PKR gained 1.10 rupee for buying and 1.05 rupee for selling, closing at 328.95 and 331.10, respectively.
Against UAE Dirham, the PKR remained unchanged for buying and gained 5 paise for selling, closing at 77.28 and 77.55, respectively.
Against Saudi Riyal, the PKR remained unchanged for buying and gained 3 paise for selling, closing at 75.53 and 75.85, respectively.
Open-market rates for dollar on Tuesday
BID Rs 283.80
OFFER Rs 284.90
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Trump says may allow lawsuit against Fed chair over renovations
WASHINGTON: President Donald Trump said Tuesday he might allow 'a major lawsuit against' the US central bank chief to proceed, as he complained again about renovations to the Federal Reserve headquarters and renewed pressure to lower interest rates. 'The damage he has done by always being Too Late is incalculable,' Trump wrote of Fed Chair Jerome Powell on his Truth Social platform. He added that he is thinking of allowing a lawsuit taking aim at Powell's oversight on the renovations in Washington, but did not offer more details. Trump has repeatedly lashed out at Powell this year over the Fed's decisions to keep interest rates steady since its last cut in December. Policymakers have been cautiously monitoring the effects of Trump's wide-ranging tariffs on the world's biggest economy, as they mulled the right time to lower rates further. Trump renews attacks on Fed chair after rates held again This is because it takes time for levies to filter through to consumer prices. The jury is still out on whether Trump's latest tariffs will have a one-off or longer-term impact on inflation, but the president has regularly pointed to benign data to urge for rate reductions to boost the economy. Shortly after government data was released Tuesday, showing that consumer inflation stayed unchanged at 2.7 percent in July, Trump wrote on social media that Powell 'must now lower the rate.' He also called the Fed's leadership 'complacent.' Trump has openly floated the idea of ousting Powell over cost overruns for the renovation. While the US leader says the price of the makeover was $3.1 billion, reiterating this figure in his social media post on Tuesday, Powell has been quick to correct Trump in the past. The cost has been put at $2.5 billion, but Trump's higher number includes work on another building that Powell maintains was completed previously. On Tuesday, Trump said Powell was doing a 'horrible' job in managing the Fed's revamp.
Business Recorder
2 hours ago
- Business Recorder
Toronto stocks jump as US inflation data keep rate-cut hopes alive
Canada's main stock index edged higher on Tuesday, as benign U.S. inflation data reinforced expectations for an interest-rate cut by the country's Federal Reserve in September. At 09:50 a.m. ET (1350 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 0.26% at 27,847.43 points and was trading near record levels. The communications sector led the advances on TSX by rising 1.24%, followed by a 0.8% rise in healthcare. A Labor Department report showed U.S. consumer prices rose 0.2% in July after a 0.3% gain in June. On a year-over-year basis, CPI advanced 2.7%, slightly below the 2.8% forecast from economists polled by Reuters. The data maintained the case for a Fed rate cut next month, according to traders' bets in futures markets. 'Inflation is on the rise, but it didn't increase as much as some people feared,' said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. 'In the short term, markets will likely embrace these numbers because they should allow the Fed to focus on labor-market weakness and keep a September rate cut on the table.' An additional boost came from seemingly subsiding trade tension between the world's top two economies. U.S. President Donald Trump extended a tariff truce with China to November 10, averting triple-digit duties on Chinese goods. Canada's materials index added 0.5%, thanks to rising copper prices due to the China tariff deadline extension. However, the trade tension between China and Canada showed no signs of easing. Beijing announced a preliminary anti-dumping duty on Canadian canola imports, a fresh escalation in a year-long trade dispute that began with Ottawa's imposition of tariffs on Chinese electric vehicle imports last August. In other stocks, Gildan Activewear fell more than 9% after the Financial Times reported that the apparel manufacturer is nearing an about $5 billion deal to acquire Hanesbrands, including debt.
Business Recorder
3 hours ago
- Business Recorder
New York cocoa prices climb while coffee turns lower
LONDON: New York cocoa futures rose on Tuesday, buoyed by fund short-covering against a backdrop of concern over the outlook for production in top grower Ivory Coast. Cocoa New York cocoa rose 2.9% to $8,688 a metric ton by 1408 GMT, climbing back towards Monday's six-week high of $8,823. Dealers said the market had gained support this week from concern over Ivory Coast's coming crop, with the initial upward move on Monday helping to trigger short-covering by funds. More sunny spells across most of Ivory Coast's cocoa-growing regions will help to boost development of the next October-to-March main crop, farmers said on Monday, adding that cold weather continued last week with below-average rainfall. London cocoa gained 2.05% to 5,830 pounds a ton. Coffee Arabica coffee futures were down 1.5% at $3.1580 per lb after touching a six-week high of $3.27. Dealers said reports of light, spotty frosts in some Brazilian coffee areas had contributed to the run-up in prices this week, though the harvest continues to progress well. Temperatures, however, are expected to moderate in the coming days. 'A cold air mass will retreat from southeast Brazil over the next three days, though it will linger near the southern border until early next week,' Marcin Gorski, analyst with LSEG Weather and Climate Research, said in a report. Robusta coffee fell 1.5% to $3,610 a ton. Sugar Raw sugar ?????rose 2.55% to 16.91 cents per lb. Dealers said the market had been steadily climbing after hitting a one-month low of 15.92 cents in early August, with speculators beginning to scale back a large net short position. White sugar gained 2.1% to $484.80 a ton.
