Intra-day update: rupee registers marginal improvement against US dollar
- Currency hovers at 277-278 level against the US dollar in inter-bank market
The Pakistani rupee saw marginal improvement against the US dollar, appreciating 0.01% during the opening hours of trading in the inter-bank market on Monday.
At 10am, the currency was hovering at 277.83, a gain of Re0.22 against the greenback.
During the previous week, the rupee declined against the US dollar as it depreciated by Re0.29 or 0.10% to close the week below 278 after over 10 weeks.
The local unit closed at 278.05, against 277.76 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
The last time the rupee had closed below 278 against the dollar was on September 18, 2024.
Globally, the US dollar pushed higher again on Monday in what is shaping up to be a critical week for the prospect of US rate cuts, while drawing verbal support from US President-elect Donald Trump.
In a surprise change of tone, Trump on Saturday demanded that BRICS member countries commit to not creating a new currency or supporting another currency that could replace the dollar or face 100% tariffs.
That marked a shift from his prior advocacy of a weaker dollar to fight trade wars and the Chinese yuan quickly slipped to a three-month trough at 7.2662 pre dollar , while the Indian rupee hit record lows.
Political uncertainty in France added to pressure on the euro which slipped 0.4% to $1.0532, after bouncing 1.5% last week and away from a one-year trough of $1.0425.
That saw the dollar index edge up to 106.170, having closed out November with a gain of 1.8% even after a setback last week.
Oil prices, a key indicator of currency parity, rose on Monday, supported by upbeat factory activity in China, the world’s second largest oil consumer, and as Israel resumed attacks on Lebanon despite a ceasefire pact, stoking tension in the Middle East.
Brent crude futures climbed 34 cents, or 0.47%, to $72.18 a barrel by 0452 GMT while U.S. West Texas Intermediate crude was at $68.32 a barrel, up 32 cents, or 0.47%.
This is an intra-day update
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