Intra-Day Market Update
On Wednesday, the Pakistani rupee showed a slight appreciation against the US dollar, marking a 0.05% increase during the early hours of trading in the inter-bank market. By 10:15 am, the rupee was trading at 278.17, a gain of Re0.13 against the greenback. The previous day, the rupee closed at 278.30, which was an increase of Re0.06 from the earlier session.
In recent weeks, the rupee has remained relatively stable, fluctuating between 277 and 278 against the dollar, as Pakistan continues to pursue an extended bailout programme with the International Monetary Fund (IMF).
Global Market Movements
The US dollar remained steady on Wednesday as traders showed caution in emerging markets, anticipating the interest rate decision in Canada and new data on US services.
Currency Movements:
- Yen: The yen eased by 0.2%, trading at 155.27 against the dollar in early Asian trade. Against the euro, it hovered at 168.74 after a significant 1% rise overnight, its largest increase since Japan’s FX market intervention last month. This surge was fueled by speculation, reported by Bloomberg News, that the Bank of Japan might consider reducing bond purchases at its policy meeting next week.
- Swiss Franc: Also benefitting from the cautious sentiment among traders.
Oil Prices:
Oil prices remained near four-month lows in Asian markets on Wednesday. This comes as the market reacts to the OPEC+ decision to increase supply later in the year and reports of rising US crude and fuel stocks.
- Brent Crude Futures: Increased by 4 cents, trading at $77.56 a barrel as of 0307 GMT.
- US West Texas Intermediate (WTI) Crude Futures: Remained flat at $73.25 a barrel.
Both oil contracts experienced a near-dollar drop on Tuesday, marking their lowest settlement levels since early February, following a decline of approximately $3 a barrel on Monday.
