In the initial trading hours on Thursday, the Pakistani rupee showed minimal movement against the US dollar, experiencing a slight appreciation of 0.01% in the inter-bank market. At 10 am, the rupee stood at 278, marking a gain of Re0.04 against the dollar. The previous day, the rupee had seen a slight improvement, closing at 278.04 against the US dollar, as reported by the State Bank of Pakistan.
Meanwhile, internationally, the US dollar strengthened against major currency counterparts following remarks from a Federal Reserve official indicating a reluctance to decrease interest rates amid persistent inflation concerns. Federal Reserve Governor Christopher Waller’s comments led to a modest uptick in the dollar index, which remained largely steady at 104.41. Market expectations for the timing of the first rate cut by the Fed have slightly decreased, with a 60% chance currently priced in for the June meeting.
On the commodities front, oil prices rebounded after two consecutive sessions of decline. Brent crude futures for May saw a slight increase to $86.38 a barrel, while US West Texas Intermediate (WTI) crude futures for May delivery rose to $81.76 a barrel. This recovery came as investors reevaluated recent US crude oil and gasoline inventories data.
