Intra-day update: rupee stable against US dollar

The Pakistani rupee remained largely stable against the US dollar, appreciating 0.01% during the opening hours of trading in the inter-bank market on Monday.

At 10:30am, the currency was hovering at 277.60, a gain of Re0.04 against the greenback.

During the previous week, rupee weakened marginally as it depreciated Re0.03 or 0.01% against the US dollar.

The local unit closed at 277.64 against 277.61 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar was pushing higher and on course for its largest monthly rise in 2-1/2 years as signs of strength in the US economy and bets on Donald Trump winning the presidency lifted US yields.

The US dollar index has climbed 3.6% to 104.49 during October, its sharpest monthly rise since April 2022.

The week ahead is crowded with data, with inflation readings for Europe and Australia, gross domestic product data in the US and purchasing managers’ indexes for China.

Weekend data showed China’s industrial profits plunged in September, with a year-on-year drop of 27.1%. The yuan hit its weakest since late August at 7.1355 per dollar.

Oil prices, a key indicator of currency parity, tumbled more than $3 a barrel on Monday after Israel’s retaliatory strike on Iran over the weekend bypassed Tehran’s oil and nuclear facilities and did not disrupt energy supplies, easing geopolitical tensions in the Middle East.

Both Brent and US West Texas Intermediate crude futures hit their lowest levels since October 01 at the open. By 0139 GMT, Brent was at $72.70 a barrel, down $3.35, or 4.4%, while WTI slipped $3.27, or 4.6%, to $68.51 a barrel.

The benchmarks gained 4% last week in volatile trade as markets priced in uncertainty around the extent of Israel’s response to the Iranian missile attack on October 01 and the US election next month.

This is an intra-day update