The Pakistani rupee gained marginally against the US dollar in early inter-bank trading on Monday as investors adopted a cautious stance ahead of key global economic indicators and oil market trends.
At around 10:20am, the rupee stood at Rs280.90 per dollar, appreciating by Re0.20 or 0.07% from the previous close. Dealers said the local currency benefitted from a relatively balanced demand-supply situation in the forex market and a stable dollar inflow from exporters.
The rupee had edged up Re0.07 or 0.02% over the previous week, closing at Rs281.10 compared to Rs281.17 a week earlier, according to the State Bank of Pakistan (SBP).
Market analysts noted that the local currency’s modest strength reflects improving investor confidence amid contained import payments and expectations of continued IMF support under Pakistan’s ongoing stabilization program.
Globally, the US dollar strengthened against the Japanese yen, which slipped 0.3% to 150.96 per dollar after reports suggested Sanae Takaichi, a pro-stimulus candidate, was poised to become Japan’s next prime minister. The news drove optimism in Asian markets, bolstering risk-sensitive currencies like the Australian dollar.
Meanwhile, oil prices — a key factor in Pakistan’s external account — declined on Monday, extending last week’s downward streak. Brent crude was trading at $61.05 per barrel, down 0.4%, while US WTI fell 0.4% to $57.33 as traders worried about oversupply and slowing demand following the International Energy Agency’s (IEA) warning of a potential glut by 2026.
Currency experts said the rupee is expected to remain range-bound in the coming days unless a sharp movement in oil prices or external repayments alters market sentiment.
