Business Recorder
The Pakistani rupee strengthened against the US dollar, appreciating 0.01% in the inter-bank market on Tuesday. At close, the local currency settled at 278.57, a gain of Re0.03 against the greenback. On Monday , the local unit closed at 278.60. Internationally, the dollar found support at the start of Asian trading on Tuesday after US President Donald Trump said he had paused a planned attack against Iran to allow negotiations, and bond markets stabilised after a two-day selloff. The US dollar index, which measures the greenback’s strength against a basket of six currencies, held steady at 99.026, attracting bids after easing fears of an escalation in the war pushed the gauge 0.3% lower on Monday, snapping a five-day winning streak. The yield on the US 10-year Treasury bond was down 3 basis points at 4.591%, retreating after hitting its highest level in a year as fears a lasting jump in inflation eased. Brent crude futures slumped 2.4% to $109.43 per barrel. The dollar had gained strength during the past week as a safe haven from an escalation of the war in the Middle East and a selloff gripping global bond markets, as investors repriced the risk that central banks would have to take action to contain inflation with the Strait of Hormuz remaining closed and energy markets disrupted. Fed funds futures are pricing an implied 36.2% probability of a 25-basis-point hike at the U.S. central bank’s two-day meeting on December 9, compared to a 0.5% chance a month ago, according to the CME Group’s FedWatch tool. Oil prices , a key indicator of currency parity, fell by nearly 2% on Tuesday after US President Donald Trump said he had paused a planned attack on Iran to allow for negotiations to end the war in the Middle East. Trump posted on social media on Monday that he was holding off on a planned military attack on Iran scheduled for Tuesday, while efforts continue to reach a deal, adding that the United States was ready to resume attacking if one is not reached. Brent futures for July were down $2.02, or 1.8%, to $110.08 a barrel at 0802 GMT, while US West Texas Intermediate crude for June delivery, which expires on Tuesday, was down 47 cents, or 0.40%, to $108.19.
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