Intra-Day Update: Rupee Registers Minor Gain Against US Dollar

The Pakistani rupee recorded a marginal increase against the US dollar, appreciating 0.04% during the opening hours of trading in the inter-bank market on Monday.

At 10:40am, the rupee was hovering at 279.25, an increase of Re0.11 against the greenback in the inter-bank market.

During the previous week, the rupee declined marginally against the US dollar as it depreciated Re0.08 or 0.02% in the inter-bank market to settle at 279.36.

The local unit snapped its 13-week long appreciation run amid lack of positive triggers on both the political and economic fronts.

During the week ended on Feb 9, 2024, SBP’s reserves increased by $13 million to reach $8.057 billion up from $8.044 billion. However, net foreign reserves held by commercial banks surged by $39 million to $5.093 billion end of last week compared to $5.054 billion a week earlier.

Globally, the US dollar was steady on Monday after data last week showing US inflation remained sticky cast doubts on when the Federal Reserve would start its easing cycle, while the yen remained rooted near the psychologically key 150 per dollar level.

US markets are closed on Monday for the Presidents’ Day holiday, with volumes likely to be low through the day.

The dollar index, which measures the US currency against six major rivals, started the week down 0.058% at 104.14 after clocking five straight weeks of gains. The index is up 3% this year.

Oil prices, a key indicator of currency parity, edged down on Monday morning as markets digested comments from US Federal Reserve officials pointing to a more patient stance regarding potential interest rate cuts, in thin early trade on what is a public holiday in the United States.

Brent crude futures were down 58 cents, or 0.69%, at $82.89 a barrel.

US West Texas Intermediate crude was 35 cents, or 0.44%, lower at $78.84 at 0138 GMT.

This is an intra-day update