Intra-day update: rupee gains further ground against US dollar

The Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.05% during the opening hours of trading in the inter-bank market on Monday.

At 10am, the currency was hovering at 282.32, a gain of Re0.15.

During the previous week, the rupee gained further against the US dollar in the inter-bank market as it appreciated by Re0.25 or 0.09%.

The local unit closed at 282.47, against 282.72 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar stabilised on Monday after last week’s losses, as markets await Tuesday’s key US CPI report for July and focus on developments in trade talks between Washington and Beijing ahead of a deadline to avoid the imposition of higher tariffs.

The dollar index was flat at 98.25 after a 0.4% decline last week.

Against the yen, the dollar was unchanged at 147.685 yen, with Japanese markets closed for the Mountain Day holiday.

Trade talks were in focus as Trump’s August 12 deadline for a deal between the US and China loomed, particularly around chip policy.

With the US and China seeking to close a deal that would avoid imposing triple-digit tariffs on each other’s goods, the Financial Times reported on Sunday that chip manufacturers Nvidia and AMD agreed to allocate 15% of their revenues from sales in China to the US government under an arrangement to obtain export licences for the semiconductors.

The report follows a warning that Nvidia’s H20 chips pose security concerns for China, a social media account affiliated with the country’s state media said on Sunday.

Oil prices, a key indicator of currency parity, fell in early Asian trading on Monday, extending declines of more than 4% last week on higher US tariffs on its trading partners, an OPEC output hike, and expectations that the US and Russia were moving closer to a Ukraine ceasefire pact.

Brent crude futures fell 52 cents, or 0.78%, to $66.07 a barrel by 0041 GMT, while US West Texas Intermediate crude futures fell 58 cents to $63.30.

This is an intra-day update