Pakistani Rupee Gains Ground Against US Dollar

The Pakistani rupee demonstrated resilience against the US dollar, experiencing a 0.1% increase during the initial trading hours in the inter-bank market on Monday.

As of 10 am, the local currency was valued at 281.43, reflecting an appreciation of Re0.28 against the US currency.

During the previous week, the rupee had weakened versus the dollar in inter-bank transactions, declining by Re0.65, equivalent to 0.23%.

The local currency concluded the week at Rs281.71, a decrease from the prior week’s closing rate of Rs281.06, as per data from the State Bank of Pakistan (SBP).

Global Market Influences

Globally, the US dollar strengthened in early Asian trading on Monday. Discussions between the US and China have eased concerns regarding a potential trade conflict between the world’s two largest economies, and tensions in various global hotspots seemed to lessen.

The dollar, along with treasuries and equities, had previously faced downward pressure following tariff announcements by the U.S. President last month. Following discussions in Geneva, US officials indicated a consensus with China to reduce the US trade deficit. Further details are anticipated later on Monday.

Market focus will also be directed towards US earnings reports and forthcoming economic data this week, including consumer price index (CPI) figures scheduled for release on Tuesday. These indicators will provide insights into the impact of trade tensions on the economy and expectations for potential interest rate adjustments by the U.S. Federal Reserve.

The US currency rose by 0.6%, reaching 146.19 yen.

The dollar index increased by 0.1%, nearing a one-month high.

Oil Price Surge

Oil prices, a crucial metric for currency valuation, increased on Monday after progress was reported from both sides regarding U.S.-China trade negotiations, boosting market confidence that the world’s two largest crude consumers are moving toward a resolution of their trade dispute.

Brent crude futures rose by 27 cents, or 0.4%, to $64.18 a barrel. U.S. West Texas Intermediate (WTI) crude futures were priced at $61.30 a barrel, a gain of 28 cents, or 0.5%, from Friday’s closing value.

Both benchmarks experienced gains of over $1 on Friday and exceeded 4% last week, marking their first weekly gains since mid-April. This surge followed a U.S. trade agreement with the United Kingdom, fueling investor optimism that economic disruptions from U.S. tariffs on its trading partners may be mitigated.

This update reflects intra-day market activity.