The Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.03% in the inter-bank market on Monday.
At close, the currency settled at 278.62, a gain of Re0.08 against the US dollar.
On Monday, the rupee had settled at 278.70, 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).
Globally, the US dollar was steady in early trading on Tuesday, with the yen inching away from one-month highs as investors brace for US inflation data and reassess expectations of a large interest rate cut from the Federal Reserve starting next week.
A mixed labour report on Friday failed to make a clear-cut case on whether the Fed would deliver a regular 25 basis point (bps) rate cut or an outsized 50 bps one at its Sept. 17-18 policy meeting.
Traders are now waiting on Wednesday’s U.S. consumer price index report for further policy clues although the Fed has made it clear employment has taken on a greater focus than inflation. The headline CPI is expected to have risen 0.2% on a month-on-month basis in August, according to a Reuters poll, unchanged from the previous month.
Investor focus will also be on the highly anticipated televised US Presidential debate later on Tuesday that could weigh heavily on the November election.
The US dollar was up 0.1% at 143.30 yen , creeping away from the one-month low of 141.75 touched on Friday.
Oil prices, a key indicator of currency parity, gave up the previous day’s gains on Tuesday as weak Chinese demand offset US supply disruptions from Tropical Storm Francine and global oil oversupply risks that continue to weigh on the market.
Brent crude futures were down 79 cents, or 1.1%, at $71.05 a barrel by 0948 GMT. US West Texas Intermediate crude lost 82 cents, or 1.2%, to $67.89.
Both benchmarks had risen about 1% on Monday.
The US Coast Guard ordered the closure of all operations at Brownsville and other small Texas ports on Monday evening as Tropical Storm Francine barrelled across the Gulf of Mexico. Corpus Christi port remained open with restrictions.
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