KEY POINTS
- Pakistani rupee gains 0.01% to settle at 281.07 against the US dollar.
- Weekly gain of Rs 0.07 or 0.02% in inter-bank market
- Yen weakens and risk-sensitive currencies strengthen amid global developments
- Oil prices dip, reflecting supply glut concerns and lower energy demand
ISLAMABAD: The Pakistani rupee posted a modest gain against the US dollar on Monday, appreciating 0.01% in the inter-bank market. The local currency settled at 281.07, up by Rs 0.03 from the previous close.
Market Performance
During the previous week, the rupee strengthened by Rs 0.07, or 0.02%, against the US dollar, closing at 281.10 compared to 281.17 a week earlier, according to data from the State Bank of Pakistan (SBP).
Analysts noted that the marginal gain reflects cautious investor sentiment amid both domestic and international developments.
Global Currency Cues
Internationally, the Japanese yen weakened against the US dollar as Sanae Takaichi, a proponent of fiscal and monetary stimulus, emerged as the front-runner to become Japan’s next prime minister.
The US dollar added 0.3% to 150.96 yen, following a drop of up to 1.1% on Friday, as investor concerns about US regional banks and trade tensions with China eased.
Other risk-sensitive currencies, such as the Australian dollar, advanced in response to improved risk appetite.
Meanwhile, oil prices declined, with Brent crude futures down 0.86% at $60.76 per barrel and US West Texas Intermediate futures falling 0.96% to $56.99.
The drop reflects ongoing concerns about a potential global supply glut in 2026 and weaker energy demand amid US-China trade uncertainties.
Outlook
Market observers expect the Pakistani rupee to remain largely range-bound against the US dollar in the short term, with domestic economic indicators, remittance flows, and global commodity and currency trends influencing near-term performance.
Any significant policy announcements or geopolitical developments could trigger higher volatility in the coming sessions.
