Intra-day update: rupee sees marginal decline against US dollar
- Currency hovers at 277-278 level in inter-bank market
The Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.02% during the opening hours of trading in the inter-bank market on Monday.
At 10:45am, the currency was at 277.73, a fall of Re0.06 against the greenback.
During the previous week, the rupee registered marginal improvement as it gained Re0.07 or 0.02% against the US dollar.
The local unit closed at 277.67, against 277.74 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
Globally, the US dollar rose against the yen on Monday after Japan’s top central banker flagged further policy tightening ahead but left open the question of timing, leaving the market no clearer on whether a move would come next month.
Against a basket of currencies the dollar held at 106.660, having touched a one-year top of 107.07 on Friday.
The index climbed 1.6% over the week, marking six weeks of gains in the last seven.
The rally has coincided with a savage swing in 10-year Treasury yields, which have climbed 70 basis points since the start of October, fuelling a 5.4% rise in the US dollar index.
Markets are eager to hear who Trump will pick as Treasury Secretary, with Howard Lutnick, the CEO of Cantor Fitzgerald, and investor Scott Bessent top candidates for the job.
Analysts generally assume Trump’s touted policies of tariffs, reduced immigration and debt-funded tax cuts will be inflationary, so limiting the scope for further rate cuts by the Federal Reserve.
Oil prices, a key indicator of currency parity, edged up on Monday after fighting between Russia and Ukraine intensified over the weekend, although concerns about fuel demand in China, the world’s second-largest consumer, and forecasts of a global oil surplus weighed on markets.
Brent crude futures gained 20 cents, or 0.3%, to $71.24 a barrel by 0130 GMT, while US West Texas Intermediate crude futures were at $67.11 a barrel, up 9 cents, or 0.1%.
This is an intra-day update
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