The Pakistani rupee remained largely stable against the US dollar in the inter-bank market during early trading on Wednesday. At 10:20 AM, the rupee was valued at 277.73, marking a marginal gain of Re0.01 from Tuesday’s closing rate of 277.74, as per the State Bank of Pakistan (SBP).
Global Market Overview
Globally, the Australian and New Zealand dollars weakened on Wednesday amid growing skepticism about China’s economic stimulus efforts. Meanwhile, the US dollar hovered near two-month highs against major currencies, driven by expectations that US interest rate cuts will be gradual.
The US dollar index remained steady at 103.25, close to its Monday high of 103.61, the highest level since August. Traders have adjusted their bets for aggressive Federal Reserve easing following resilient economic data and slightly higher-than-expected inflation in September.
Currently, market expectations indicate a 94% chance of a 25 basis-point interest rate cut when the Federal Reserve meets on November 7, with a 6% chance of no change, according to CME Group’s FedWatch Tool.
Oil Prices Edge Higher
In the energy market, oil prices rose slightly on Wednesday, with Brent crude futures up by 14 cents to $74.39 per barrel and US West Texas Intermediate (WTI) crude increasing by 19 cents to $70.77 per barrel. This rise followed earlier losses driven by demand concerns and reports that Israel may not target Iranian nuclear and oil sites, easing fears of a supply disruption.
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