Intra-day Update: Rupee Shows Slight Improvement Against the US Dollar

The Pakistani rupee gained 0.14% against the US dollar during the first hours of trade in the interbank market on Monday.

At 11:20 a.m., the rupee was trading at 305.05, up Re0.42 in the interbank market.

The rupee fell another 1.46% in the previous week in the inter-bank market, closing at 305.47 against the US dollar on Friday, but the gap with open-market rates increased.

On Sunday, Chief of Army Staff General Asim Munir met with major business leaders in a significant development. General Asim Munir emphasised the Special Investment Facilitation Council’s (SIFC) key role, underlining its potential to attract significant investments of up to $100 billion from nations such as Saudi Arabia, the United Arab Emirates, Kuwait, and others.

To improve economic decision-making, he announced the formation of task forces focused on economic issues and various industries.

Globally, the US dollar began Monday on a stable note as investors analysed US employment data that showed some signs of cooling and bolstered predictions that the Federal Reserve was nearing the end of its monetary tightening cycle.

Data released on Friday revealed that job growth in the United States increased in August, but the unemployment rate increased to 3.8%, while wage gains slowed. The economy created 110,000 fewer jobs in June and July than previously estimated.

The dollar was little changed against a basket of currencies at 104.20, although it stayed close to the two-month high of 104.44 reached on Aug. 25. In August, the index increased 1.7%, reversing a two-month losing trend. Monday is a holiday in the United States.

Oil prices, a key measure of currency parity, rose on Monday, backed by forecasts that major producers will tighten supplies and growing confidence that the Federal Reserve will keep interest rates constant to avoid harming the US economy.

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