The value of the US dollar witnessed a slight decrease of 19 paisas in the interbank market on Friday. According to market reports, the dollar fell from Rs277.79 to Rs277.63 during trading hours.
The marginal decline in the dollar's value comes as the Pakistani rupee continues to recover against the Greenback, amid efforts by the State Bank of Pakistan (SBP) to stabilize the currency through interventions and policy measures.
Globally, the US dollar fell from two-month highs hit overnight versus its major peers after signs of weakness in the labour market boosted the case for quicker Federal Reserve rate cuts.
Despite that, the dollar on Friday remained on track for a second straight weekly advance after surprisingly strong monthly payrolls figures last week prompted traders to take bets for a half-percentage-point cut at the Fed's next policy meeting off the table.
The market's interpretation of Thursday's surge in initial jobless claims was complicated by an uptick in the consumer price index (CPI) the same day, which served as a reminder that restrictive monetary policy may be required to bring inflation under control.
Bets for a quarter-point Fed rate cut on Nov 7 increased to 83.3% from 80.3% a day earlier, with the remaining odds for policy to stay steady, according to the CME Group's FedWatch Tool. A week earlier, there was a 32.1% chance of a half-point reduction and 67.9% probability of a quarter-point cut.
The two-year US Treasury note yield, which typically moves in step with interest rate expectations, fell on the day, and was down at 3.9531% early on Friday, keeping the dollar under pressure.
