Intra-day update: Rupee shows slight recovery against US Dollar

During the first hours of trading on Monday, the Pakistani rupee gained 0.08% against the US dollar.

At 10:20 a.m., the rupee was trading at 286.75, up Re0.22 in the interbank market.

The rupee fell 0.18% versus the US dollar in the previous week, closing at 286.97 in the interbank market.

The rupee recovered after three sessions of losses, but attention was drawn to the political front, where Prime Minister Shehbaz Sharif reportedly announced the date for the dissolution of the National Assembly.

Meanwhile, the State Bank of Pakistan’s (SBP) foreign exchange reserves fell a little, a non-event for the currency market, but all eyes will be on how large the import bill gets as the government relaxes restrictions.

Globally, the dollar fell on Monday after a mixed US jobs report provided little directional certainty and as market attention shifted to inflation data due this week from the world’s two largest nations.

The US dollar economy added fewer jobs than predicted in July, according to figures released on Friday, but it still posted solid pay improvements and a decrease in the unemployment rate.

While the dollar sank to a one-week low against a basket of currencies in the aftermath of the data, its losses were limited since the report pointed to a still-tight employment market, implying the Fed may need to maintain rates higher for longer.

The US dollar index was last at 101.98, close to Friday’s low of 101.73. The pound gained 0.04% to $1.2756, while the euro fell 0.01% to $1.1010.

Oil prices, a crucial measure of currency parity, rose to their highest level since mid-April on Monday after main producers Saudi Arabia and Russia agreed to keep supplies low for another month in order to further tighten global markets and support prices.

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