The Pakistani rupee strengthened against the US dollar, appreciating 0.06% during the opening minutes of trading in the inter-bank market on Tuesday.
At 10am, the local currency was hovering at 280.23, a gain of Re0.18 against the greenback.
On Tueesday, the local unit closed at 280.41.
Globally, the Japanese yen held steady in early Asian trading after a powerful 7.5-magnitude earthquake struck Japan’s northeast overnight, adding to a risk-off mood ahead of several policy decisions from central banks, including the Federal Reserve.
Against the yen, the US dollar was last flat at 155.885 yen after the quake, which prompted evacuation orders and tsunami warnings that were downgraded to advisories hours later.
Markets are preparing for a busy week of central bank decisions, anticipating a rate cut from the Federal Reserve at its meeting later this week.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, was last up 0.1% at 99.092, edging back from its highest level in a week.
Bond investors are dialling back expectations of rate cuts in 2026 as scepticism mounts that Kevin Hassett, the frontrunner to succeed Jerome Powell, whose eight-year term as Fed chair ends in May, will prove as dovish as hoped by US President Donald Trump.
Nevertheless, markets believe policy easing from the U.S. central bank this week is a near-certainty, with attention turning to the outlook for the year ahead.
Fed funds futures are pricing an implied 87% probability of a 25-basis-point cut at the Fed’s December 9-10 policy meeting, according to the CME Group’s FedWatch tool.
Oil prices, a key indicator of currency parity, steadied on Tuesday after slipping 2% in the previous session, as market participants kept a close eye on peace talks to end Russia’s war in Ukraine and a looming decision on US interest rates.
Brent crude futures were down 2 cents, or 0.03%, to $62.47 a barrel at 0101 GMT.
US West Texas Intermediate crude was at $58.84, down 4 cents, or 0.07%.
Both contracts fell by more than $1 on Monday after Iraq restored production at Lukoil’s West Qurna 2 oilfield, one of the world’s largest.
This is an intra-day update
