KARACHI: On Wednesday, within the inter-bank market, the Pakistani rupee saw a slight uptick of 0.08% against the US dollar during its opening hours.
In the inter-bank market, at 10:15 am, the rupee stood at 281, reflecting a rise of Re0.22.
n Tuesday, the rupee made a slight upward move, settling at 281.22 against the US dollar. Meanwhile, the global market saw the US dollar maintaining stability on Wednesday as traders exercised caution ahead of upcoming US inflation data that’s anticipated to impact Federal Reserve policy. The atmosphere was tense in the bitcoin market due to volatility triggered by a false social media announcement.
The US securities regulator confirmed a brief unauthorized access to its X social media account where a fake message claimed approval of exchange traded funds (ETFs) for bitcoin. However, the Securities and Exchange Commission (SEC) clarified that spot bitcoin ETFs had not yet received approval.
The aftermath of the fake post caused Bitcoin to spike to a new 21-month peak of $47,897 before swiftly dropping below $45,000 as the SEC promptly removed the post and disclaimed its authenticity.
In the currency realm, the dollar remained strong, with the dollar index (measuring the US currency against six counterparts) standing at 102.53, reflecting a 0.215% gain on Tuesday. This month, the index has risen by 1% following a 2% dip in December, as traders reevaluate the expected intensity and timing of the Federal Reserve’s rate cuts.
December’s unexpected dovish stance by the Fed—forecasting 75 basis points (bps) of rate cuts in 2024—accelerated market predictions, with traders last month anticipating as much as 160 bps of cuts.
On the energy front, oil prices edged higher on Wednesday, extending gains from the previous day, fueled by industry data revealing a greater-than-forecast decline in US crude stocks. However, the rise was limited due to larger-than-expected growth in product inventories. Brent crude futures increased by 0.4% to $77.88 a barrel, and US West Texas Intermediate crude futures climbed 0.4% to $72.53 a barrel at 0138 GMT.
Both benchmarks had surged approximately 2% on Tuesday, driven by the Middle East crisis and a supply disruption in Libya.
