The Pakistani rupee remained largely stable, depreciating 0.01% against the US dollar in the inter-bank market on Monday.
At close, the local unit settled at 278.24, a loss of Re0.03 against the greenback, as per the State Bank of Pakistan (SBP).
During the previous week, the rupee registered a marginal increase against the US dollar as it gained Re0.18 or 0.06%.
The local unit closed at 278.21, against 278.39 it had closed the week earlier, as per the SBP.
In a key development, the International Monetary Fund (IMF) mission is expected to visit Pakistan this month to discuss a new programme, the lender said on Sunday, ahead of Islamabad beginning its annual budget-making process for the next financial year.
Pakistan last month completed a short-term $3-billion programme, which helped stave off sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer term programme.
“A mission is expected to visit Pakistan in May to discuss the FY25 budget, policies, and reforms under a potential new programme for the welfare of all Pakistanis,” the IMF said in an emailed response to Reuters.
Meanwhile, Finance Minister Muhammad Aurangzeb on Monday also said that the IMF mission is expected to arrive in Pakistan in the next seven to ten days.
Globally, the US dollar was broadly steady on Monday as a soft US jobs report boosted wagers that the Federal Reserve may still cut rates twice this year, while the yen was a tad weaker to start the week.
Data on Friday showed US job growth slowed more than expected in April and the increase in annual wages fell below 4.0% for the first time in nearly three years, as signs of labour market cooling raised optimism that the US central bank could engineer a “soft landing” for the economy.
Markets are now pricing in 45 basis points of cuts this year, with a rate cut in November fully priced in.
The dollar index, which measures the US currency against six rivals, was at 105.12, having touched a three week low of 104.52 on Friday.
Oil prices, a key indicator of currency parity, climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil-producing region.
Brent crude futures gained 73 cents, or 0.9%, to $83.69 a barrel at 0852 GMT, while US West Texas Intermediate crude futures were at $78.95 a barrel, up 84 cents, or 1.1%.
Last week, both futures contracts posted their steepest weekly loss in three months with Brent falling more than 7% and WTI down 6.8%, as investors weighed weak US jobs data and the possible timing of a Federal Reserve interest rate cut.
Inter-bank market rates for dollar on Monday
BID Rs 278.24
OFFER Rs 278.44
Open-market movement
In the open market, the PKR lost 16 paisa for buying and 18 paisa forselling against USD, closing at 276.73 and 279.38, respectively.
Against Euro, the PKR lost 47 paisa for buying and 43 paisa for selling,closing at 295.65 and 298.33, respectively.
Against UAE Dirham, the PKR lost 1 paisa for buying and 5 paisa forselling, closing at 75.00 and 75.72, respectively.
Against Saudi Riyal, the PKR remained unchanged for buying and lost 4 paisa for selling, closing at 73.28 and 73.95, respectively.
Open-market rates for dollar on Monday
BID Rs 276.73
OFFER Rs 279.38