The Pakistani rupee saw a slight uptick against the US dollar, rising by 0.05% during the morning trading hours in the inter-bank market on Monday.
At 10 am, the rupee stood at 278.17, marking a gain of Re0.14 against the dollar.
In the previous week, the rupee experienced a marginal decline versus the US dollar, closing lower by Re0.37 or 0.13%.
Closing the week at 278.31, it fell from its earlier close of 277.94 against the greenback.
In significant news, it was reported that Pakistan has not been included in the agenda for the International Monetary Fund (IMF) executive board meetings scheduled until May 1.
According to the Fund’s website, while the executive board meetings are set for April 29 and May 1, there’s no review scheduled for Pakistan’s $3-billion stand-by arrangement (SBA) program.
Pakistan anticipates that approval from the executive board will unlock approximately $1.1 billion, representing the final tranche of the $3-billion SBA signed in June 2023.
Globally, the US dollar maintained its position near recent highs amidst significant policy and geopolitical developments from last week.
Although the dollar’s trade-weighted index remained above 106, it retreated from the five-month highs reached last week. This adjustment followed comments from Federal Reserve officials and a series of higher-than-anticipated inflation data releases, prompting a scaling back of rate cut expectations.
The easing of tensions in the Middle East, which had previously boosted the dollar, gold, and crude oil prices while denting stock markets, contributed to a reduction in volatility.
Oil prices, a critical barometer of currency stability, declined on Monday as market focus returned to fundamental factors. Israel and Iran downplayed the risk of escalating hostilities after Israel’s limited strike on Iran.
Brent futures dropped by 67 cents, or 0.77%, to $86.62 a barrel by 0415 GMT. The front-month US West Texas Intermediate (WTI) crude contract for May, expiring on Monday, fell by 63 cents, or 0.76%, to $82.51 a barrel. Meanwhile, the more active June contract decreased by 64 cents to $81.58 a barrel.
