Pakistani Rupee Edges Higher Against US Dollar

The Pakistani rupee experienced a slight increase against the US dollar, climbing by 0.04% during Monday’s interbank trading session.

At approximately 10:00 am, the local currency was trading around 283.6, reflecting a gain of Re0.1 against the American currency.

Over the preceding week, the rupee had faced downward pressure, diminishing by Re0.74, which equates to a 0.26% decline against the US dollar.

The domestic currency concluded the previous week at 283.70, a drop from the prior week’s closing rate of 282.96 versus the dollar, according to data from the State Bank of Pakistan (SBP).

Global Market Overview

On the international stage, the US dollar saw a minor strengthening on Monday as investors sought safer assets, although market activity remained relatively calm, hinting at anticipation for Iran’s response to US actions on its nuclear facilities that have heightened tensions in the Middle East.

The most significant movements occurred in the oil sector, where prices reached a five-month peak, while global stock values decreased in the immediate market reaction to the US actions over the weekend.

Currency Market Dynamics

Across currency markets, the dollar generally gained ground against its primary counterparts. It rose by 0.25% against the Japanese yen, reaching 146.415 after hitting a one-month high earlier in the day.

The euro fell by 0.33% to $1.1484, and the Australian dollar, often used as an indicator of risk appetite, weakened by 0.2% to $0.6437, nearing its lowest point in over three weeks.

Consequently, the dollar index, which compares the US currency to six other major currencies, increased by 0.12% to 99.037.

Oil Price Surge

Oil prices surged on Monday to levels unseen since January, as the United States’ participation with Israel in targeting Iranian nuclear sites over the weekend raised concerns about supply disruptions.

Brent crude futures increased by $1.92, or 2.49%, to reach $78.93 a barrel as of 0117 GMT. U.S. West Texas Intermediate crude climbed by $1.89, or 2.56%, to $75.73.

Earlier in the session, both contracts had jumped by over 3%, hitting five-month highs of $81.40 and $78.40, respectively, before retracting some of those gains.

This is an intra-day update.