The Pakistani rupee made a slight recovery against the US dollar, appreciating by 0.07% in early trading hours on Thursday.

By 10:30 am, the rupee stood at 278.27 in the inter-bank market, reflecting a gain of Re0.20 from its previous closing rate of 278.47, as reported by the State Bank of Pakistan (SBP). Trading resumed after a one-day break for a public holiday.

Globally, the US dollar maintained a dominant position, nearing a two-year high against major currencies at 108.15, with a monthly gain of over 2%. Meanwhile, the Australian dollar dropped 0.45% to $0.6241, and the New Zealand dollar fell 0.51% to $0.5650. The euro slipped 0.18% to $1.0398, while the yen lingered near a five-month low at 157.45 per dollar.

Market analysts attribute the greenback’s renewed strength to fewer anticipated rate cuts by the Federal Reserve next year, bolstered by robust US Treasury yields. The 10-year yield remained steady at 4.5967%, climbing roughly 40 basis points this month, while the two-year yield firmed at 4.3407%.

Oil prices also edged higher in thin holiday trading, supported by expectations of fiscal stimulus in China and a potential decline in US crude inventories. Brent crude rose 0.2% to $73.69 per barrel, while US West Texas Intermediate crude was up 0.2% at $70.25 per barrel.

China’s announcement of increased fiscal support for consumption, including higher pensions and medical insurance subsidies, further fueled optimism in the global markets.

This intra-day update highlights the rupee’s modest recovery amidst a dynamic global economic landscape.