Pakistani Rupee Gains Marginally Against US Dollar
The Pakistani rupee showed a slight improvement against the US dollar, gaining 0.02% in early trading on Monday in the interbank market.
At 10:00 AM, the rupee’s value stood at 283.65, reflecting an increase of Re0.07 against the US currency.
Throughout the previous week, the rupee demonstrated relative stability in its value against the US dollar.
According to the State Bank of Pakistan (SBP), the local currency concluded the previous week at 283.72, showing a minor decrease of Rs0.02, or 0.01%, compared to the prior week’s closing value of 283.70 against the dollar.
Global Market Overview
Worldwide, the US dollar was near its lowest point in almost four years against the euro on Monday. Market optimism regarding potential US trade agreements has reinforced predictions of earlier interest rate reductions by the Federal Reserve.
The dollar also remained close to a four-year low against the British pound and a more than ten-year low against the Swiss franc. This occurred after the US and China made progress toward a tariff agreement, even as President Donald Trump introduced some uncertainty by halting trade discussions with Canada.
Investors viewed Federal Reserve Chair Jerome Powell’s recent testimony to Congress as suggesting a more flexible monetary policy. Powell indicated that rate cuts were probable if inflation did not surge this summer due to tariffs.
According to the CME Group’s FedWatch Tool, expectations for a minimum of a quarter-point rate decrease by September have risen to 92.4%, up from approximately 70% the previous week.
The US dollar index, which compares the US currency to six major currencies including the euro, pound, and franc, increased slightly by 0.1% to 97.276. However, it remained close to the more than three-year low of 96.933 seen late last week.
Oil Prices Decline
Oil prices, a significant indicator of currency parity, decreased by 1% on Monday as reduced geopolitical risks in the Middle East and the possibility of another OPEC+ output increase in August improved the supply outlook.
Brent crude futures fell by 66 cents, or 0.97%, to $67.11 a barrel by 0031 GMT, prior to the August contract’s expiration later on Monday.
The more active September contract was at $65.97, decreasing by 83 cents.
US West Texas Intermediate crude went down by 94 cents, or 1.43%, to $64.58 a barrel.
Last week, both benchmarks experienced their largest weekly decline since March 2023. However, they are expected to finish higher in June, marking a second consecutive monthly increase of more than 5%.
This information reflects an intra-day market update.
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