The Pakistani rupee was up 0.13% against the US dollar in early trade.
Around 11 a.m., the rupee’s price was 223.67, up Re0.28 from earlier in the day’s trade. The rupee closed at 223.95 on Wednesday, unchanged versus the US dollar. Ishaq Dar, the federal minister of finance and revenue, announced on Wednesday that efforts to prevent the smuggling of US dollars into “neighboring” nations, will benefit the economy.
Dar continued by saying that the administration is working to stabilize the economy. As traders focused on remarks made by Federal Reserve Chair Jerome Powell that interest rate rises might be dialed down “as soon as December,” the dollar fell to a three-month low against the yen on Thursday.
While adding that “keeping policy at a tight level for some time” is necessary to contain inflation, Powell stated on Wednesday that “slowing down at this point is a sensible approach to balance the risks.”
The probability that the Fed will raise interest rates by 50 basis points on December 14 is presently pegged at 91%, with a 9% possibility that rates would rise by another 75 basis points on the same day. Around May, the peak is visible at a lower 5%.
The dollar index, which compares the value of the dollar to six important currencies, including the yen and the euro, continued its more than 1% decline from Wednesday into Thursday, falling another 0.09% to 105.69. Early Asian trade on Thursday saw a sharp increase in oil prices, a major measure of currency parity, driven by evidence of tighter supply and hope for a resurgence in Chinese demand.
