The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.03% during the opening hours of trading in the inter-bank market on Monday.
At 11:30am, the currency was hovering at 277.83, a loss of Re0.09 against the greenback.
During the previous week, the Pakistani rupee remained largely stable against the US dollar in the inter-bank market.
The local unit closed at 277.74, against 277.70 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
Globally, the US dollar edged higher on Monday as markets braced for US inflation data and a throng of Federal Reserve speakers this week, while the yuan nursed a hangover from Beijing’s latest underwhelming stimulus package.
The US dollar stood at 7.1955 yuan, having jumped 0.7% on Friday, and looks set to again test the 7.2000 barrier.
Trading was light with US bond markets closed for a public holiday, though stocks and futures are open.
The dollar index was a fraction firmer at 105.05, after gaining 0.6% last week mainly against the euro.
Analysts assume Donald Trump’s policies would put upward pressure on US inflation and bond yields, while limiting the Federal Reserve’s scope to ease policy.
A host of Fed officials are due to speak this week, including Chair Jerome Powell on Thursday, so there will be plenty of guidance on the outlook for rates.
Oil prices, a key indicator of currency parity, extended declines on Monday as the threat of a supply disruption from a US storm eased and after China’s stimulus plan disappointed investors seeking fuel demand growth in the world’s No. 2 oil consumer.
Brent crude futures dropped 31 cents, or 0.4%, to $73.56 a barrel by 0340 GMT while US West Texas Intermediate crude futures were at $70 a barrel, down 38 cents, or 0.5%. Both benchmarks fell more than 2% last Friday.
This is an intra-day update
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