KARACHI: On Monday’s opening hours of inter-bank trading, the Pakistani rupee strengthened by 0.1% against the US dollar.
Throughout the past week, the rupee exhibited a gain of Re0.61 or 0.21% against the US dollar in the inter-bank market, marking its fifth consecutive week of advancement. This upward trajectory was fueled by the recent staff-level agreement between Pakistan and the International Monetary Fund (IMF) on the first review of the $3 billion Stand-by Arrangement (SBA), resulting in a notable 1.7% appreciation of the local currency against the greenback since the agreement was announced on November 15.
On a global scale, currency markets opened the week cautiously following significant fluctuations in the previous week, largely influenced by multiple central bank meetings, including those of the Federal Reserve, the European Central Bank (ECB), and the Bank of England (BoE). The US dollar, which had been bolstered by aggressive rate hikes from the Fed throughout 2022 and 2023, experienced a decline of approximately 1.3% against a basket of currencies after the recent Fed policy meeting. As of the latest update, the dollar index had dipped by 0.05% to reach 102.57.
Meanwhile, oil prices, a critical determinant of currency parity, saw an early Asian trade increase of nearly 1%. This rise was supported by diminished exports from Russia and concerns regarding potential oil supply disruptions due to Houthis’ attacks on ships in the Red Sea. Brent crude futures climbed 0.9% to $77.24 a barrel, and US West Texas Intermediate crude stood at $72.08 a barrel, marking an increase of 0.9%.
