American currency depreciates by 16 paisas in interbank market
Rupee continues ascendance against US Dollar. The US Dollar continued to depreciate further against the Pakistani Rupee, as it decreased in value by 16 paisas in the interbank market on Tuesday morning.
In the interbank market, the Dollar started trade on Tuesday at Rs283.5.
On Monday, the US Dollar experienced a decline for the fifth consecutive time, as it closed trade at Rs283.21 after a decrease of five paisas in the interbank market against the Pakistani Rupee.
This marks a consistent trend of the US Dollar’s decreasing value against the Pakistani Rupee. Over the last week, the local currency appreciated by 61 paisas and settled at Rs283.26 against the US dollar in the interbank market.
Bank of Japan stands pat on monetary policy
The Bank of Japan on Tuesday maintained its long-standing, ultra-loose monetary policy and offered no guidance on its plans in the new year, sending the yen down against the dollar and boosting stocks.
Speculation had been swirling for weeks that officials would shift away from negative interest rates and tight grip on bond yields as inflation picks up.
That came after governor Kazuo Ueda this month said handling monetary policy would “become even more challenging from the year-end and heading into next year”.
While most other major central banks hiked borrowing costs for more than a year in a bid to tame prices, the BoJ has refused to budge as it looked to kickstart the world’s number three economy.
After a two-day meeting, the bank said on Tuesday: “With extremely high uncertainties surrounding economies and financial markets at home and abroad, the Bank will patiently continue with monetary easing.”
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Policymakers have for several months hinted that they are willing to adopt a more normalised policy, such as by making minor tweaks to its yield curve control scheme, which sees the bank control the band within which government bonds are allowed to move.
“We expect…(policy) change is very likely next year,” Katsutoshi Inadome, senior strategist at SuMi TRUST, said in a note ahead of the BoJ decision.
“We believe it is likely the BoJ will raise interest rates in 2024” after the central bank gets “a clearer view of forthcoming wage increases” that are regarded as a key factor for achieving its inflation target, he said.
“Looking at the increasing speculation on policy adjustments, January 2024 seems an appropriate time to begin policy modification,” he added.
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