The Pakistani rupee recorded marginal improvement against the US dollar, appreciating 0.03% in the inter-bank market during the opening hours of trading on Wednesday.
At 10am, the currency was hovering at 278.58, a gain of Re0.09 against the greenback.
The rupee settled at 278.67 on Tuesday, according to the State Bank of Pakistan (SBP).
Globally, the US dollar stood tall on Wednesday and the yen sagged close to levels that drew intervention last year after strong US data drove a spike in yields and pared some bets on Federal Reserve rate cuts.
Traders have a wary eye on US labour data due on Friday and on inauguration day on Jan. 20, when Donald Trump is expected to begin his second U.S. presidency with a flurry of policy announcements and executive orders.
Overnight data showed US job openings unexpectedly rose in November, layoffs were low, while services sector activity accelerated in December and a measure of prices paid for inputs hit a two-year high – a possible inflation warning.
Bond markets reacted by sending 10-year yields up more than eight basis points to touch an eight-month high of 4.699%, while the 30-year yield rose 7.4 bps and is less than nine bps from breaching 5%.
Traders price only about 37 bps of easing through this year, according to LSEG data derived from rates futures.
The US dollar followed suit and the contrast between the solid US economy and weak data in Australia and New Zealand has the Antipodean currencies plumbing multi-year lows.
Oil prices, a key indicator of currency parity, rose on Wednesday as supplies from Russia and OPEC members tightened, while data showing an unexpected increase in US jobs openings pointed to expanding economic activity and consequent growth in oil demand.
Brent crude was up 32 cents, or 0.42%, to $77.37 a barrel at 0135 GMT. US West Texas Intermediate crude rose 42 cents, or 0.57%, to $74.67.
This is an intra-day update
Source: Brecorder
