The Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.04% during the opening hours of trading in the inter-bank market on Monday.
At 10:20am, the currency was hovering at 277.72, a gain of Re0.12 against the US dollar.
During the previous week, the rupee further improved against the US dollar and closed below 278 level after more than five months.
The local unit closed at 277.84, a gain of Re0.32 or 0.11% against 278.16 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
The last time the rupee had closed below the 278 level was on April 9, 2024.
The currency market is now factoring in the International Monetary Fund (IMF) Executive Board meeting that is scheduled to take Pakistan’s 37-month Extended Fund Facility (EFF) of about $7 billion on its agenda on September 25.
Globally, the US dollar edged up 0.3% to 144.35 yen, having bounced 2.2% last week from a 139.58 low. The euro gained almost 3% last week to reach 161.09 against yen, while holding firm on the dollar at $1.1160.
Markets were still basking in the afterglow of the Federal Reserve’s half-point rate cut, with futures implying a 50% probability it will deliver another outsized move in November.
Oil prices, a key indicator of currency parity, gained slightly during early trade on Monday, boosted by concerns conflict in the Middle East may impact supply in the key producing region and expectations the US interest rate cut last week will support demand.
Brent crude futures for November were up 20 cents, or 0.3% at $74.69 a barrel at 0045 GMT. US crude futures for November were up 22 cents, or 0.3%, at $71.22.
Both contracts rose in the previous session on support from the U.S. interest rate cut and a dip in US supply in the aftermath of Hurricane Francine. Oil prices climbed last week for a second week.
This is an intra-day update
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