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 10:20am, the currency was hovering at 277.60, a gain of Re0.04 against the US dollar.

During the previous week, the rupee made further improvement as it gained Re0.20 or 0.07% against the US dollar.

The local unit closed at 277.64 against 278.84 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

During the previous week, Pakistan received the first tranche of Special Drawing Rights (SDR) 760 million, equivalent to $1.03 billion, from the International Monetary Fund (IMF).

In a key development, Finance Minister Muhammad Aurangzeb stated Sunday that Pakistan economy’s “DNA needed to be fundamentally changed” to ensure that the latest IMF agreement is the country’s final one. The minister also stated that Pakistan must declare a “nuclear war” against the cash-based economy as part of the reforms.

Globally, the US dollar slipped on commodity currencies underpinned by investor expectations of a turnaround in China’s economy.

Last week the US Federal Reserve’s favoured inflation measure showed inflation running at a pretty benign 2.2% for the 12 months to August, sending US yields and the dollar lower.

Oil prices, a key indicator of currency parity, extended gains on Monday, buoyed by escalating concerns over potential supply pressures from Middle East producers following Israel’s increased attacks on Iranian-backed forces in the region.

Brent crude futures for November delivery increased 51 cents, or 0.71%, to $72.49 a barrel as of 0330 GMT.

That contract expires on Monday, and the more-active contract for December delivery gained 50 cents, or 0.7%, to $72.04. US West Texas Intermediate crude futures added 43 cents, or 0.63%, to $68.61 a barrel.

This is an intra-day update