The US Federal Reserve’s policy decision is due on Wednesday, with markets widely expecting interest rates to be held unchanged. Fed funds futures price about a 91 percent probability that the Federal Open Market Committee keeps its policy rate on hold, according to the CME Group’s FedWatch tool, while about 84 percent odds are priced for a rate increase in December.
The dollar held at a two-week high ahead of the decision, with the euro flat at $1.1129 and the dollar index at 102.40, as traders waited for the Fed’s signal on whether a December move remains on the table. Analysts note the Fed does not need to move rates today to move markets — it only needs to change the perceived probability of a December hike. For Pakistan, the signal matters directly: it shapes the dollar, oil prices and foreign investment flows that feed into domestic inflation and the rupee.
Sources: Reuters, Mettis Global (CME FedWatch). Written in our own words for information only.