The Pakistani rupee registered marginal increase against the US dollar, appreciating 0.03% in the inter-bank market on Monday.
At close, the currency settled at 277.97, a gain of Re0.08 against the greenback.
During the previous week, the rupee declined against the US dollar as it depreciated by Re0.29 or 0.10% to close the week below 278 after over 10 weeks.
The local unit closed at 278.05, against 277.76 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
The last time the rupee had closed below 278 against the dollar was on September 18, 2024.
Globally, the US dollar pushed higher again on Monday in what is shaping up to be a critical week for the prospect of US rate cuts, while drawing verbal support from US President-elect Donald Trump.
In a surprise change of tone, Trump on Saturday demanded that BRICS member countries commit to not creating a new currency or supporting another currency that could replace the dollar or face 100% tariffs.
That marked a shift from his prior advocacy of a weaker dollar to fight trade wars and the Chinese yuan quickly slipped to a three-month trough at 7.2662 per dollar, while the Indian rupee hit record lows.
Political uncertainty in France added to pressure on the euro which slipped 0.4% to $1.0532, after bouncing 1.5% last week and away from a one-year trough of $1.0425.
That saw the US dollar index edged up to 106.170, having closed out November with a gain of 1.8% even after a setback last week.
Oil prices, a key indicator of currency parity, rose on Monday, supported by strong factory activity in China, the world’s second-largest oil consumer, and escalating tensions in the Middle East, where Israel resumed attacks on Lebanon despite a ceasefire deal.
Brent crude futures climbed 75 cents, or 1.04%, to $72.59 a barrel by 1002 GMT while U.S. West Texas Intermediate crude was at $68.70 a barrel, up 70 cents, or 1.03%.
Inter-bank market rates for dollar on Monday
BID Rs 277.97
OFFER Rs 278.17
Open-market movement
In the open market, the PKR gained 7 paise for buying and 9 paise for selling against USD, closing at 277.24 and 278.98, respectively.
Against Euro, the PKR gained 1.04 rupee for buying and 1.61 rupee for selling, closing at 290.43 and 292.69, respectively.
Against UAE Dirham, the PKR lost 8 paise for buying and 1 paisa for selling, closing at 75.35 and 76.00, respectively.
Against Saudi Riyal, the PKR lost 8 paise for buying and 2 paise for selling, closing at 73.61 and 74.20, respectively.
Open-market rates for dollar on Monday
BID Rs 277.24
OFFER Rs 278.98
American Dollar Exchange Rate