The Pakistani rupee appreciated by 22 paisas (0.08%) against the US dollar, closing at 281.03. It is worth noting that on Monday, the local currency had closed at 281.25 per dollar.
On the international front, the Japanese yen fell to a two-month low against the US dollar on Tuesday, as attention in Japan shifted to the composition of the cabinet under Sanae Takaichi following her victory in the party leadership race. Takaichi, who succeeded the hardline Prime Minister Shigeru Ishiba on Saturday, is considered the most dovish among the five candidates of Japan’s ruling Liberal Democratic Party.
The euro weakened after the resignation of the French prime minister, while European Central Bank officials indicated that an interest rate cut might be necessary.
Traders are closely monitoring speeches by Federal Reserve policymakers throughout the day, as other economic indicators have stalled due to the US government shutdown.
The US Dollar Index rose 0.05% to 98.17, while the euro remained stable with slight changes at $1.1705.
The White House on Monday distanced itself from President Donald Trump’s remarks that government employees were already being laid off due to the shutdown. However, it warned that if the stalemate continued into the seventh day, further job losses could occur.
Market focus has now shifted to the Federal Reserve for signals on the timing and scale of additional interest rate cuts. The Fed is expected to reduce rates by 25 basis points at its upcoming meeting on October 28–29, as recent data indicates weakness in the labor market.
