KARACHI: The Pakistani rupee remained largely stable against the US dollar during early trading hours in the inter-bank market on Monday. At 10:15 am, the rupee stood at 278.32, marking a minor gain of Re0.01 against the dollar.
Over the previous week, the rupee experienced a slight decline, losing Re0.12 or 0.04% against the US dollar. It closed at 278.33 compared to the 278.21 closing the week before, as reported by the State Bank of Pakistan (SBP).
Recently, the rupee has hovered around the 277-278 range against the dollar as Pakistan continues to pursue an extended bailout program from the International Monetary Fund (IMF).
Globally, the currency market began the week cautiously, with the dollar slightly down on Monday following data indicating that US inflation had stabilized in April. This data has kept the possibility open for the Federal Reserve to cut interest rates later in the year.
In May, the dollar experienced its first monthly decline of the year, influenced by changing expectations regarding the timing and extent of rate cuts by the US central bank. Markets are anticipating a 37 basis points reduction in rates this year following Friday’s data showing a 0.3% increase in the personal consumption expenditures (PCE) price index for April, consistent with March’s gain.
The dollar index, which tracks the US currency against six major peers, was down 0.067% at 104.51 on Monday.
Oil prices, which significantly impact currency exchange rates, remained relatively unchanged on Monday. Investors weighed the implications of OPEC+’s decision to extend deep output cuts into 2025. Brent futures for August delivery dropped 4 cents, or 0.05%, to $81.07 a barrel at 0344 GMT, after dipping to a session low of $80.55. US West Texas Intermediate (WTI) crude futures for July delivery decreased by 1 cent, or 0.01%, to $76.98, after earlier falling to $76.39.
Last week, Brent futures settled down by 0.6% and WTI posted a 1% loss.
