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Dollar rises ahead of expected Fed rate hike

Sarfraz Ali 01:05 PM | 14 Dec, 2015
Dollar rises ahead of expected Fed rate hike
TOKYO (APP) - The dollar broadly rose Monday ahead of a key US central bank policy meeting, while China's yuan hit fresh multi-year lows as policy-makers signalled a move away from its peg against the greenback.

Markets are focused on the Federal Reserve, which is expected to give the go-ahead to a small increase in borrowing costs for the first time in nearly a decade -- a plus for the dollar.

The Fed's two-day meeting, which starts Tuesday, comes as plunging oil prices and worries about the global economy have recently sent investors flocking to safe-haven units including the yen and euro.

"While the US dollar has been trending higher over the past year in anticipation of the first likely rate hike in a decade, the tone of the (Fed) statement will determine how the US dollar might fare" going forward, Bank of New Zealand currency strategist Jason Wong said in a commentary.

"Fed tightening will be occurring at a time when other major central banks are on hold or still easing, which should continue to provide support to the US dollar," he added. Higher interest rates attract investors seeking better returns to dollar-denominated assets.

On Monday, the greenback rose to 121.10 yen from 120.86 yen Friday in New York, but it was still well down from 123 yen at the start of last week.

Also Monday, a closely watched Bank of Japan survey on business confidence showed major manufacturers were cautious last quarter.

However, the slightly better-than-expected result dampened hopes that the Bank of Japan would expand its huge stimulus programme this year, further supporting the yen.

The euro weakened to $1.0958 and 132.70 yen from $1.0996 and 132.89 yen in US trade.

China's yuan, or renminbi, slumped as Beijing struggles with an outflow of capital and a growth slowdown in the world's number two economy.

The dollar bought 6.4588 yuan. It hit a four-year low of 6.4358 in US trade on Friday after Beijing signalled it would begin measuring the yuan against a multi-currency basket instead of just the dollar.

The move -- aimed at better reflecting market realities -- spurred speculation the Chinese unit would weaken further.

"The market took the announcement as the People's Bank of China allowing for more weakness in the renminbi," Andy Ji, a Singapore-based strategist at Commonwealth Bank of Australia, told Bloomberg News.

China shocked world markets over the summer with a series of currency devaluations that set off a plunge in its domestic stock market, and reignited worries about the health of the world's number two economy.

In other trading Monday, the dollar rose against some emerging market currencies, while weak oil prices hit Malaysia's ringgit.

The ringgit fell 0.52 percent, while the South Korean won dropped 0.45 percent and Taiwan's dollar fell 0.22 percent.

Sarfraz Ali
Sarfraz Ali

Sarfraz Ali is working as Editor Web for Daily Pakistan. He earned a postgraduate degree in Mass Communication from IUB and diploma in International Print Journalism from Thomson Foundation UK. He regularly writes on ...

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KARACHI - Following are the foreign currency exchange rates for US Dollar, Saudi Riyal, UK Pound Sterling, U.A.E. Dirham, European Euro, and other foreign currencies in Pakistan open market on February 1, 2023 (Wednesday).

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar ‎USD 269.9 272.85
Euro EUR 290.22 290.82
UK Pound Sterling GBP 330.48 331.18
U.A.E Dirham AED 72.78 73.08
Saudi Riyal SAR 71.23 71.53
Australian Dollar AUD 190 193
Bahrain Dinar BHD 702.68 710.68
Canadian Dollar CAD 201.75 205
China Yuan CNY 39.15 39.55
Danish Krone DKK 38.6 39
Hong Kong Dollar HKD 33.72 34.07
Indian Rupee INR 3.24 3.35
Japanese Yen JPY 2.5 2.54
Kuwaiti Dinar KWD 865.31 874.31
Malaysian Ringgit MYR 62.24 62.84
New Zealand Dollar NZD 171.35 173.35
Norwegians Krone NOK 26.76 27.06
Omani Riyal OMR 686.49 694.49
Qatari Riyal ‎QAR 72.58 73.28
Singapore Dollar SGD 201.2 203.2
Swedish Korona SEK 25.45 25.75
Swiss Franc CHF 286.19 288.69
Thai Bhat THB 8.06 8.21

KARACHI – The price of a single tola of 24-karat gold in Pakistan is Rs202,000 on Wednesday. The price of 10 grams of 24k gold was recorded at Rs173,190.

Likewise, 10 grams of 22k gold were being traded for Rs164,500 while a single tola of 22-karat gold was being sold at Rs 179,100.

Note: The gold rate in Pakistan is fluctuating according to the international market so the price is never been fixed. The below rates are provided by local gold markets and Sarafa Markets of different cities.

City Gold Silver
Lahore PKR 202,000 PKR 2,390
Karachi PKR 202,000 PKR 2,390
Islamabad PKR 202,000 PKR 2,390
Peshawar PKR 202,000 PKR 2,390
Quetta PKR 202,000 PKR 2,390
Sialkot PKR 202,000 PKR 2,390
Attock PKR 202,000 PKR 2,390
Gujranwala PKR 202,000 PKR 2,390
Jehlum PKR 202,000 PKR 2,390
Multan PKR 202,000 PKR 2,390
Bahawalpur PKR 202,000 PKR 2,390
Gujrat PKR 202,000 PKR 2,390
Nawabshah PKR 202,000 PKR 2,390
Chakwal PKR 202,000 PKR 2,390
Hyderabad PKR 202,000 PKR 2,390
Nowshehra PKR 202,000 PKR 2,390
Sargodha PKR 202,000 PKR 2,390
Faisalabad PKR 202,000 PKR 2,390
Mirpur PKR 202,000 PKR 2,390

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