Intra-day update: rupee records gain against US dollar

The Pakistani rupee strengthened against the US dollar, appreciating 0.06% during the opening minutes of trading in the inter-bank market on Friday. At 10am, the local currency was hovering at 280.03, a gain of Re0.17 against the greenback. On Wednesday, the local unit closed at 280.20. Globally, as the new year approaches, investors are focused on when the US Federal Reserve might further cut interest rates and by how much. Traders are pricing in at least two cuts in 2026, although they do not expect the Fed to move before June. The central bank itself has projected one more cut next year, but a divided Fed has left investors on edge about the US policy outlook. Investors are also awaiting President Donald Trump’s nomination of a new Fed chair to replace Jerome Powell, whose term ends in May, and any hint of Trump’s decision could sway markets in the coming week.