Key Points
- Pakistani rupee strengthens 0.01 per cent against the US dollar
- Local currency settles at Rs 279.92 in the interbank market and Rs 280.25 in the open market
- The dollar is under pressure amid global risk aversion and geopolitical concerns
- Oil prices dip, further easing currency pressure
ISLAMABAD: The Pakistani rupee edged higher against the US dollar on Monday, gaining 0.01 per cent in the interbank market to close at Rs 279.92, according to the State Bank of Pakistan (SBP), a rise of Rs 0.03 from Friday’s closing of Rs 279.95.
The modest appreciation followed a week in which the rupee posted a marginal gain of Rs 0.07 or 0.03 per cent.
In the open market, the rupee traded at Rs 280.25 against the greenback, based on rates compiled by the Forex Association of Pakistan, reflecting similar modest gains.
The local currency’s slight appreciation comes as the US dollar weakened in global markets.
Investors reacted to US President Donald Trump’s recent tariff threats against several European countries amid the Greenland conflict.
The development prompted risk-averse flows into safe-haven currencies such as the Japanese yen and Swiss franc.
During early Asian trade, the euro and sterling dropped to multi-week lows against the dollar before bouncing back, leaving the US currency under pressure.
The traders appeared to be assessing the longer-term implications of the geopolitical tensions.
Oil prices, which influence currency valuations, also fell, with Brent crude down 1 per cent to $63.48 per barrel and US West Texas Intermediate for February at $58.84 per barrel.
Easing oil prices reduced pressure on the rupee, as lower fuel costs support the local currency’s stability.
The State Bank of Pakistan continues to monitor currency movements closely amid a backdrop of imported fuel dependence and global market volatility.
