Pakistani Rupee Gains Slightly Against US Dollar

The Pakistani rupee saw a slight improvement against the US dollar, appreciating by 0.01% in early inter-bank trading on Monday.

At 10:20 am, the rupee was trading at 281.02, a gain of Re0.04 against the US currency.

Last week, the rupee experienced a decline against the US dollar in the inter-bank market, losing Re0.09 or 0.03%.

The local currency concluded the previous week at Rs281.06, compared to Rs280.97 from the week prior, according to the State Bank of Pakistan (SBP).

Globally, the US dollar faced headwinds on Monday, even as concerns about a US recession eased slightly, with investors awaiting concrete developments in Sino-US trade relations beyond mere indications from officials.

The robust March payrolls data had bolstered the dollar by reducing the likelihood of a Federal Reserve rate cut in June and increasing the possibility of a hawkish stance at this week’s policy meeting.

Market expectations now suggest only a 37% chance of a Fed rate cut in June, down from 64% a month ago. Goldman Sachs and Barclays have both adjusted their predictions, shifting their anticipated cut from June to July.

US Dollar Remains Weak

Despite the positive jobs data, the US dollar’s gains were limited and it struggled to maintain momentum, with trading activity in Asia reduced due to holidays in Japan and China.

The US dollar also declined by 0.2% to 144.63 yen, moving away from Friday’s high of around 145.91.

Speculation that the US administration was urging Asian nations to strengthen their currencies against the dollar led to a surge of over 5% in the Taiwanese dollar last Friday.

Oil prices, a crucial indicator of currency values, fell by over $2 a barrel in early Asian trading on Monday as OPEC+ prepares to further accelerate oil output increases, raising concerns about increased supply.

Brent crude futures decreased by $2.04 a barrel, or 3.33%, to $59.25 a barrel by 2240 GMT, while U.S. West Texas Intermediate crude stood at $56.19 a barrel, down $2.10, or 3.60%.

Both contracts reached their lowest levels since April 9 at Monday’s opening after OPEC+ agreed to accelerate oil production hikes for the second consecutive month, increasing output in June by 411,000 barrels per day (bpd).

This information is an intra-day market update.