The Pakistani rupee lowered against the US dollar, depreciating 0.02% in the inter-bank market on Monday.
At close, the rupee settled at 279.27, a loss of Re0.06 against the greenback.
During the previous week, the rupee depreciated against the US dollar as it lost Re0.16 or 0.06% in the inter-bank market.
The local unit closed on Friday at 279.21, against 279.05 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
Internationally, the yen rose on Monday in a boost from upbeat Japanese GDP data, while the Australian and New Zealand dollars held broadly steady ahead of policy decisions later in the week.
The US dollar was on the back foot as traders assessed recent weaker-than-expected U.S. economic data which have reignited bets for more Federal Reserve rate cuts this year.
The yen was last 0.27% stronger at 151.94 per US dollar, reversing losses from earlier in the session.
Traders are now pricing in roughly another 35 basis points worth of rate hikes by December.
In the broader market, the US dollar was struggling to recoup its losses after a selloff on the back of Friday’s weak US retail sales data and as investors cheered the delay in the implementation of Donald Trump’s reciprocal tariffs.
Geopolitics also remained in focus with reports that talks aimed at ending the Russian-Ukraine conflict will begin in Saudi Arabia this week, though the participants are not entirely clear.
The US dollar index last stood at 106.79, after tumbling 1.2% last week.
Oil prices, a key indicator of currency parity, were little changed on Monday as investors eyed developments on a potential Russia-Ukraine peace deal that could ease sanctions disrupting global supply flows.
Brent crude futures dipped 1 cent at $74.73 a barrel at 0740 GMT, while US West Texas Intermediate crude was down 7 cents at $70.67 a barrel.
Inter-bank market rates for dollar on Monday
BID Rs 279.27
OFFER Rs 279.47
Open-market movement
In the open market, the PKR gained 8 paise for buying and 9 paise for selling against USD, closing at 278.65 and 280.98, respectively.
Against Euro, the PKR lost 49 paise for buying and 74 paise for selling, closing at 291.58 and 294.55, respectively.
Against UAE Dirham, the PKR gained 3 paise for buying and 1 paisa for selling, closing at 75.96 and 76.53, respectively.
Against Saudi Riyal, the PKR gained 3 paise for buying and 1 paisa for selling, closing at 74.21 and 74.78, respectively.
Open-market rates for dollar on Monday
BID Rs 278.65
OFFER Rs 280.98
American Dollar Exchange Rate