Intra-day update: rupee gains against US dollar

The Pakistani rupee gained against the US dollar, appreciating 0.06% during Monday’s opening hours of trading in the inter-bank market.

At 10:10am, the currency was hovering at 281.10, a gain of Re0.16 against the greenback.

During the previous week, the Pakistan rupee posted a marginal gain as it appreciated by Re0.11 or 0.04% against the US dollar in the inter-bank market. The local unit closed at 281.26, against 281.37 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

Internationally, the yen tumbled against the US dollar by the most in five months in early Monday trading after Sanae Takaichi won the LDP leadership election over the weekend. This set the country on course for more expansionary fiscal policy and complicated the task facing the Bank of Japan.

The yen sank 1.6% to 149.81 yen on the US dollar, its biggest one-day slide since May 12, wiping out gains it made in the past week as markets resumed trading in Asia.

With many markets in Asia closed for holidays, the dollar index was last down 0.1% at 98.029, extending recent losses.

The dollar has weakened steadily against its major peers this year as traders attempt to gauge the economic impact of US President Donald Trump’s policies and attacks on the independence of the Federal Reserve.

Market activity signals that easing at the Fed’s October meeting is a near-certainty, with Fed funds futures implying a 94.6% probability of a 25-basis-point rate cut, according to the CME Group’s FedWatch tool.

Speculators are also pricing a 70% chance that the government shutdown lasts beyond October 15, according to contracts on the betting website Polymarket.

Oil prices, a key indicator of currency parity, rose around 1.5% on Monday after OPEC+ announced a more modest monthly increase in production than expected, tempering some concerns about supply additions, though analysts expect near-term gains to be capped by a soft demand outlook.

Brent crude futures rose 91 cents, or 1.4%, to $65.44 a barrel by 0315 GMT, while US West Texas Intermediate crude was at $61.77, up 89 cents, or 1.5%.

This is an intra-day update