Rupee gains against US dollar
The Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Monday. The local unit closed the day at 277.15, a gain of Re0.01 against the greenback. During the previous week, the Pakistani rupee closed at 277.16 against the greenback, a gain of Re0.09 from 277.25 it had closed at a week earlier. Internationally, the US dollar inched higher to hold near a…
The Pakistani rupee continued its steady appreciation against the US dollar on Monday, closing at 277.15, marking a gain of Re0.01. This marks a slight increase from its closing rate of 277.16 a week prior, which was still a 9-paisa gain from the previous week's closing of 277.25. Globally, the US dollar showed signs of strength, nearing a two-month high on the day.
The ongoing Iran-US standoff was contributing to higher oil prices, while investors were anticipated to pore over inflation data and central bank policy decisions over the coming week. The euro and British pound both slipped 0.1% against the dollar, trading at $1.1379 and $1.3232 respectively, hovering near multi-month lows. The dollar index, which gauges the US currency's performance against a basket of peers, saw a marginal increase to 101.15, positioning itself for a 1.7% rise in September, its strongest monthly gain since June.
Analysts are now focused on forthcoming US economic data releases, including the Personal Consumption Expenditures (PCE) Index on Wednesday and non-farm payrolls on Friday, with both expected to support the Federal Reserve's plan for additional rate hikes. According to CME Group’s FedWatch tool, there is a 65% probability of a rate increase by the Fed at the end of October.
Oil prices, which are a significant factor in currency valuation, surged more than 2% on Monday following US President Donald Trump's rejection of a proposed Iran peace deal, which could lead to the Strait of Hormuz being reopened. Brent and US West Texas Intermediate crude prices rose by $2.60 and $2.08 respectively, reaching $106.92 and $94.49 per barrel.
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