The Pakistani rupee gained marginally against the US dollar during intra-day trading on Monday, appreciating 0.06% in the inter-bank market.
At 10:10am, the local currency was quoted at 281.10, up Re0.16 against the greenback. Last week, the rupee had also posted a slight gain of Re0.11, or 0.04%, closing at 281.26 against the dollar compared with 281.37 a week earlier, according to the State Bank of Pakistan (SBP).
On the international front, the Japanese yen tumbled against the dollar by its steepest margin in five months after Sanae Takaichi secured victory in the ruling LDP leadership election, raising expectations of more expansionary fiscal policy. The yen slipped 1.6% to 149.81 per dollar, erasing its earlier weekly gains.
Meanwhile, with several Asian markets shut for holidays, the dollar index eased 0.1% to 98.029, continuing its recent downward trend. The US dollar has been under pressure this year amid investor concerns over President Donald Trump’s policies and his criticism of the Federal Reserve.
Market sentiment signals a near-certain 25-basis-point cut at the Fed’s October policy meeting, with CME Group’s FedWatch tool showing a 94.6% probability. Speculators also priced in a 70% chance that the US government shutdown could extend beyond October 15.
In commodities, oil prices rose around 1.5% after OPEC+ announced a smaller-than-expected increase in output. Brent crude futures climbed 91 cents, or 1.4%, to $65.44 a barrel, while US West Texas Intermediate (WTI) gained 89 cents, or 1.5%, to $61.77.
