KARACHI: On Monday, the Pakistani rupee exhibited a slight uptick against the US dollar, appreciating by 0.02% during the initial hours of trading within the inter-bank market.
At 9:50 am, the rupee was holding steady at 280.50, reflecting a modest gain of Re0.07 in the inter-bank market.
Conversely, in the previous week, the rupee had experienced a 0.63% decline, amounting to a Rs1.77 decrease against the US dollar in the inter-bank market. The local currency had commenced the week at the 278.80 level but ultimately concluded the week on Friday at 280.57.
In a related development, experts have indicated that remittance inflows are anticipated to regain momentum, particularly from Gulf countries. This resurgence is attributed to the local currency’s notable resurgence against the US dollar in both the inter-bank and open markets over the past few weeks, as reported by Business Recorder.
Furthermore, the caretaker government has introduced an incentive scheme, allocating Rs80 billion, aimed at encouraging overseas Pakistanis to send remittances to their homeland without incurring any charges.
On the international front, the US dollar demonstrated a slight uptick in cautious trading on Monday, maintaining a near-150 yen level. This was observed as traders awaited a policy decision from the Bank of Japan later in the week, in addition to significant central bank meetings and the release of economic data on a global scale.
Friday’s data revealed a surge in US consumer spending in September, driven by increased purchases of motor vehicles and travel, sustaining a path of higher spending as the fourth quarter approached.
The dollar index experienced a marginal 0.03% increase, reaching 106.63, as investors assessed the potential implications of recent robust US economic data on the Federal Reserve’s rate outlook.
In contrast, oil prices, a pivotal indicator of currency parity, declined by more than 1% on Monday. This decline was attributed to cautious sentiment ahead of a US Federal Reserve policy meeting and the forthcoming release of China’s manufacturing data this week. These factors offset any support that may have arisen from heightened tensions in the Middle East.
Specifically, Brent crude futures witnessed a 1.6% drop, equivalent to $1.11, reaching $89.37 per barrel by 0350 GMT. Meanwhile, US West Texas Intermediate crude experienced a 1.2% decrease, equivalent to $1.34, settling at $84.20 per barrel.
