US dollar falls against rupee, finds a footing in global market
LAHORE: (Web Desk) The US dollar has depreciated by Re0.6 to Rs278.30 in the interbank while in the international market, the greenback has found its footing, according to the State Bank of Pakistan.

 On Monday, the greenback closed at Rs278.36 in the interbank after exchange rate increased by Rs0.3.

Previously on Friday, the Pakistani rupee recorded an increase of Re18 against the US dollar in the interbank market, and reached at Rs278.32.

In the recent weeks, the Pakistani rupee has largely been nearly 277-278 against the dollar.

During the previous week, the local currency had depreciated marginally with a loss of Re0.12 or 0.04% against the US dollar. The local unit closed at 278.33, against 278.21 it had closed the week earlier against the greenback, the central bank said.

In the international market, the US dollar has found its footing after a period of weakness. This is reflected in the Dollar Index (DXY) rising above 104. A stronger dollar makes gold more expensive for foreign buyers, reducing demand and exerting downward pressure on prices.

The dollar ticked up on Tuesday after falling to its lowest against the euro, sterling and Swiss franc since mid-March overnight as signs of a softening U.S. economy boosted the case for earlier Federal Reserve interest rate cuts.

Investors were looking towards U.S. job openings data later in the day, which will provide an insight into the state of the labor market and could push the U.S. currency lower.

The euro rose as high as $1.0916 for the first time since March 21, but gave up some ground to stand 0.3% lower at $1.0866.

Sterling hit its highest since mid-March too at $1.2818 but was also last down 0.4%.

As the U.S. currency found a footing, the dollar index was up 0.11% at 104.26, having fallen to its lowest since mid-April overnight at 103.99.

Data on Monday showed a second straight month of slowdown in manufacturing activity and an unexpected decline in construction spending, causing the dollar index to fall around 0.6%.

“The dollar is starting to show signs of weakness,” said Chris Turner, global head of markets at lender ING. “Today’s US JOLTS job openings data could determine whether recent dollar losses are... the start of an important new trend.”

The U.S. job openings and labor turnover survey (JOLTS) is due out at 10 a.m. ET, and will show the number of vacancies in May. It will also report on the number of people voluntarily quitting their job.

 “This figure had surged through the pandemic as tight labor markets prompted staff to quit jobs in search of higher pay,” said Turner. “This piece of data is seen to have a good lead on wage inflation.”

Japan’s yen bucked the trend on Tuesday and continued to rise against the dollar after climbing on Monday, with the U.S. currency down 0.43% at 155.34, its weakest in two weeks.

Bank of Japan Deputy Governor Ryozo Himino said on Tuesday the central bank must be “very vigilant” to the impact the yen’s fluctuations could have on the economy and inflation in guiding monetary policy.