The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.05% in the inter-bank market on Monday.
At close, the currency settled at 278.7, a loss of Re0.13 against the US dollar.
During the previous week, the rupee depreciated marginally as it lost Re0.03 or 0.01% against the US dollar.
The local unit closed at 278.57 against 278.54 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
In recent months, the domestic currency has largely been around 277-279 against the dollar as traders keep an eye on some positive indicators and approval from the International Monetary Fund’s (IMF) Executive Board over a new $7-billion Extended Fund Facility (EFF).
Internationally, the US dollar held to tight ranges on Monday while the yen pared some of its safe-haven gains, as investors were undecided on the scale of a Federal Reserve rate cut expected later this month and looked to this week’s US inflation reading for more clues.
Friday’s highly anticipated US jobs data failed to offer clarity to traders on the question of whether the Fed would deliver a regular 25-basis-point rate cut or an outsized 50 bp one at its policy meeting next week.
While employment increased less than expected in August, the jobless rate ticked lower and wage growth remained solid, indicating that the US labour market was cooling, but not at a pace that warranted panic over the economy’s growth outlook.
Fed policymakers on Friday signalled they are ready to kick off a series of interest rate cuts at the central bank’s upcoming meeting on Sept. 17-18, noting a cooling in the labour market that could accelerate into something more dire in the absence of a policy shift.
Currencies were mostly rangebound in early Asia trade, steadying after some volatility in the wake of the nonfarm payrolls report on Friday.
Oil prices, a key indicator of currency parity, jumped by about 1% on Monday as a potential hurricane approaching the US Gulf Coast helped oil prices to recover some of the previous week’s heavy losses.
Brent crude rose 67 cents, or 0.94%, to $71.73 a barrel by 0901 GMT while West Texas Intermediate crude futures were up 68 cents, or 1%, at $68.35.
Prices of Brent crude had fallen in each of the past six trading sessions, retreating by more than 11%, or nearly $9 a barrel, to register the lowest closing price since December 2021 on Friday.
Analysts said Monday’s rebound was partly in response to a potential hurricane near the US Gulf Coast.
Inter-bank market rates for dollar on Monday
BID Rs 278.70
OFFER Rs 278.90
Open-market movement
In the open market, the PKR lost 36 paise for buying and 9 paise for selling against USD, closing at 279.46 and 281.03, respectively.
Against Euro, the PKR gained 1.13 rupee for buying and 1.24 rupee for selling, closing at 308.10 and 311.10, respectively.
Against UAE Dirham, the PKR lost 5 paise for buying and 4 paise for selling, closing at 75.80 and 76.53, respectively.
Against Saudi Riyal, the PKR lost 5 paise for buying and 4 paise for selling, closing at 74.05 and 74.76, respectively.
Open-market rates for dollar on Monday
BID Rs 279.46
OFFER Rs 281.03
American Dollar Exchange Rate