By WEB DESK: The Pakistani rupee began the trading week after Eid holidays with a slight uptick against the US dollar, marking a 0.06 per cent gain in the early inter-bank market hours on Monday.
As of 10 am, the rupee stood at 277.78, showing a gain of Re0.16 against the dollar.
Throughout the preceding two sessions last week, the rupee maintained relative stability against the US dollar.
Closing at 277.94 on Tuesday, it held steady compared to the previous week’s closing rate of 277.93 against the greenback.
In a significant development, Pakistan’s economic delegation, led by Finance Minister Muhammad Aurangzeb, departed for Washington on Sunday to engage in discussions with the International Monetary Fund (IMF) regarding a prospective new bailout program.
Scheduled for this week in Washington, the talks between Pakistan and the IMF will involve the government’s appeal for the approval of a fresh loan program. Key ministerial meetings and events are slated to take place from April 17 to 19.
Internationally, the US dollar maintained stability on Monday, following its most substantial weekly gain since 2022. This stability comes amid escalating tensions in the Middle East and the likelihood of sustained high US interest rates.
Last week, the dollar surged 1.6 per cent against a basket of six major currencies, spurred by concerns over unexpected increases in US inflation, which raised doubts about anticipated US rate cuts. European policymakers also signaled potential rate cuts in the near future.
Notably, the dollar reached a 34-year peak against the yen, climbing to 153.69. Additionally, it hit a five-month high against the euro on Friday and continued to trade near those levels during early Asia trading, with a euro fetching $1.0646.
Initial currency reactions appeared to be more influenced by diminishing expectations of Federal Reserve rate cuts rather than by Iran’s weekend retaliatory attack on Israel, which led to declines in stock markets, bitcoin, and oil.
Oil prices, a crucial barometer of currency dynamics, experienced a decline during Monday’s trading session. Market participants reduced risk premiums following Iran’s attack on Israel late Saturday, characterized by the Israeli government as causing limited damage.
Brent futures for June delivery slipped 20 cents to $90.25 a barrel, while West Texas Intermediate (WTI) futures for May delivery were down 33 cents at $85.33 a barrel by 0225 GMT.
