Karachi: The Pakistani rupee appreciated 0.09% or Re0.26 against the US dollar in early inter-bank trading on Tuesday, reaching 280.25 by 10:00 AM. The local currency had closed at 280.51 on Monday.
The greenback remained under pressure globally after US manufacturing contracted for a ninth straight month, with the ISM PMI falling to 48.2 in November. Weak new orders, employment, and persistent tariff drag intensified bets on a Federal Reserve rate cut.
Markets now assign an 88% probability of a 25-bp reduction at the Fed’s December 10 meeting, up from 63% a month ago. The US Dollar Index slipped to 99.408, marking its seventh straight decline.
Meanwhile, oil prices rose for a second day amid Ukrainian strikes on Russian energy infrastructure and escalating US-Venezuela tensions, indirectly supporting emerging-market currencies including the rupee.