“US Dollar Rate in Pakistan on Jan 14 Up by 0.4 Paisa to Rs278.72”

On January 14, the US dollar rate in Pakistan increased by 0.4 paisa (4 paisa), reaching Rs278.72 in the interbank market, according to the State Bank of Pakistan (SBP).

Globally, the US dollar remained near its highest level in over two years on Tuesday. This rise came as traders reduced expectations for US interest rate cuts in 2025, due to strong economic data. Meanwhile, concerns over Britain’s fiscal health kept the struggling pound under scrutiny.

With President-elect Donald Trump preparing to take office next week, analysts believe his anticipated policies could stimulate economic growth, though they might also lead to higher inflationary pressures.

The combination of potential tariffs and the Federal Reserve’s cautious stance on interest rate cuts this year has pushed Treasury yields and the dollar higher, putting downward pressure on the euro, pound, yen, and yuan.

The dollar index, which tracks the US currency against six major counterparts, rose by 0.16% to 109.59, approaching the 26-month high of 110.17 reached on Monday.

Following a strong jobs report last Friday, which reinforced support for the Federal Reserve’s measured approach to monetary easing, investor attention now turns to the upcoming inflation report, scheduled for release on Wednesday.