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Currency hovers at 281-282 level in inter-bank market The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.13% during the opening hours of trading in the inter-bank market on Tuesday. At 10:15am, the rupee was hovering at 281.50, an increase of Re0.36, in the inter-bank market. During the year 2023, the rupee registered a depreciation of 19.7% to settle at 281.86 . Also read: When a stick reduces the pain: rupee still sees one of its worst years in 2023 The decline came on account of economic challenges including a rising external financing gap, challenging global financial markets, and local political instability. Since the turn of the century, the PKR has depreciated in 19 out of the 23 years, with 2023 emerging as the fourth-worst. Only the years 2008, 2018, and 2022 have been worse. In a key development, the International Monetary Fund (IMF) Executive Board is scheduled to consider the first review under Pakistan’s current $3 billion stand-by arrangement (SBA) on January 11, 2024. Globally, the US dollar rose on the first trading day of the year as attention turned to economic data this week that may provide clues on the Federal Reserve’s next moves, while bitcoin surged above $45,000 for the first time since April 2022. The dollar index, which measures the US currency against six rivals, fell 2% in 2023, snapping two years of gains. It was last at 101.54, up 0.158%, as investors weighed the prospect of the Fed cutting rates this year. The dollar’s ascent weighed on the Japanese yen the most, with the Asian currency down 0.54% at 141.63 per dollar, having slid 7% in 2023. Rescue teams in Japan on Tuesday struggled to reach isolated areas hit by a powerful earthquake on New Year’s Day, with reports of more than 20 people dead in a disaster that toppled buildings and knocked out power to thousands of homes. Markets are now pricing in an 86% chance of interest rate cuts from the Fed to start from March, according to CME FedWatch tool, with over 150 basis points (bps) of easing anticipated in the year. Oil prices , a key indicator of currency parity, jumped 1% on Tuesday, starting the New Year higher as a Red Sea naval clash focused attention on potential Middle East supply disruptions and expectations of Chinese economic stimulus boosted the demand outlook in the world’s top crude importer. Brent crude rose $1.03, or 1.3%, to $78.07 a barrel by 0225 GMT while US West Texas Intermediate crude was at $72.53 a barrel, up 88 cents, or 1.2%. This is an intra-day update
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