The Pakistani rupee maintained its positive trajectory against the US dollar for the ninth consecutive session, appreciating 0.04% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee settled at 280.24 after an increase of Re0.12.

During the previous week, the Pakistani rupee continued its upward march against the US dollar as the local currency appreciated Rs1.04 or 0.37% to settle at 280.36 against the greenback in the inter-bank market.

This appreciation run has been on the back of announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) on the first review of the $3 billion Stand-by Arrangement (SBA), which led to the approval of the second tranche of the bailout.

Last week, the IMF Executive Board completed the first review of the SBA, allowing for an immediate disbursement of $700 million.

Meanwhile, foreign exchange reserves held by the SBP stand at $8.15 billion as of January 5, but are set to get a boost on IMF inflows.

Internationally, the US dollar ebbed on Monday on renewed expectations of a rate cut by the Federal Reserve in March, while the Chinese yuan struggled near a one-month low ahead of a slew of economic data this week.

Bets for a Fed cut in March have gathered some steam after data on Friday showed US producer prices unexpectedly fell in December, sending US Treasury yields sliding in response.

The US dollar index was flat at 102.50, having drifted largely sideways over the past couple of sessions.

Oil prices, a key indicator of currency parity, edged up on Monday as traders watched for supply disruption risks in the Middle East following strikes by US and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea.

Brent crude futures were up 24 cents, or 0.3%, to $78.53 a barrel by 0737 GMT after settling 1.1% higher on Friday.

US West Texas Intermediate crude was at $72.85 a barrel, up 17 cents, or 0.2%, following a near 1% gain in the previous session.

The benchmarks jumped more than 2% last week to touch their highest intraday levels this year after US and British forces launched dozens of air strikes against Houthi forces in retaliation for months of attacks on Red Sea shipping that the Iran-backed fighters cast as a response to war in Gaza.

Inter-bank market rates for dollar on Monday

BID                            Rs 280.24

OFFER                      Rs 280.44

Open-market movement

In the open market, the PKR gained 36.00 paisa for buying and 25.00 paisa for selling against USD, closing at 278.79 and 281.25, respectively.

Against Euro, the PKR gained 97.00 paisa for buying and 82.00 paisa for selling, closing at 304.62 and 307.58, respectively.

Against UAE Dirham, the PKR lost 1.00 paisa for buying and 3.00 paisa for selling, closing at 76.00 and 76.73, respectively.

Against Saudi Riyal, the PKR gained 23.00 paisa for buying and 21.00 paisa for selling, closing at 74.25 and 74.94, respectively.

Open-market rates for dollar on Monday

BID                            Rs 278.79

OFFER                      Rs 281.25