The Pakistani rupee strengthened against the US dollar, appreciating 0.08% during the opening minutes of trading in the inter-bank market on Tuesday. At 10:30am, the local currency was hovering at 279.95, a gain of Re0.21 against the greenback. On Monday , the local unit closed at 280.16. Globally, the US dollar was steady on Tuesday ahead of the Federal Reserve’s release of its December minutes report, which is expected to reveal divisions inside the central bank about next year’s policy pathway. Currency markets were mostly tranquil due to holiday-thinned liquidity as traders looked ahead after a dismal year for the US dollar helped push the euro and sterling to their strongest showings since 2017. The euro was last at $1.177225, on course for a yearly gain of 13.7%, while the pound fetched $1.3509 and was set for an increase of 8% in 2025. The dollar index, which measures the US currency against rivals, was poised for a 9.6% annual drop, its steepest decline in eight years due to Fed rate-cut bets, shrinking interest rate differentials against other currencies and worries about fiscal deficits and political uncertainty. The index was at 98.033 in early trading, not far from a three-month low. Investor focus this week will be on the Fed minutes after the central bank cut rates earlier this month, but cautioned that they could remain on hold in the near term. For next year, policymakers are split about where rates should go. Oil prices , a key indicator of currency parity, retreated a touch early on Tuesday after rising more than 2% in the previous session, partly driven by spillover from a pullback in precious metals, even as escalating Russia–Ukraine tensions left markets grappling with supply disruption fears. Brent crude futures for February delivery, which expires on Tuesday, were down 21 cents, or 0.3%, at $61.73 a barrel as of 0150 GMT. The more active March contract was at $61.30, down 19 cents or 0.3%. US West Texas Intermediate crude eased 20 cents, or 0.3%, at $57.88. Both contracts settled more than 2% higher in the previous session after Moscow accused Kyiv of targeting President Vladimir Putin’s residence, stoking fears of supply disruptions. This is an intra-day update