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Intra-day update: rupee appreciates marginally against US dollar – Markets

The Pakistani rupee opened after Eid holidays with a minor gain against the US dollar, appreciating 0.06% in the early hours of trading in the inter-bank market on Monday.

At 10am, the rupee was hovering at 277.78, a gain of Re0.16 against the greenback.

During the two-session previous week, the rupee remained largely stable against the US dollar.

The local unit closed on Tuesday at 277.94, against 277.93 it had closed the week earlier against the greenback.

In a key development, Pakistan’s economic team led by Finance Minister Muhammad Aurangzeb left for Washington on Sunday to hold talks with the International Monetary Fund (IMF) for a new bailout programme.

Talks between Pakistan and the IMF are scheduled for this week in Washington, wherein the government team will request the Fund for approval of a new loan programme. The main ministerial meetings and events will be held from April 17-19.

Globally, the US dollar steadied on Monday, holding its biggest weekly gain since 2022, as escalating conflict in the Middle East and the prospect of stubbornly high US interest rates gave support.

The dollar went up 1.6% against a basket of six major currencies last week after a small but unnerving upside surprise in US inflation cast doubt over bets on US rate cuts, while European policymakers signalled a cut within a few months.

The dollar made a 34-year high on the yen, rising to 153.69. It made a five-month top on the euro on Friday and traded near those levels early in the Asia day, buying a euro for $1.0646.

The initial reaction in currencies seemed to be based more on the receding Federal Reserve rate cut expectations than a weekend retaliatory attack on Israel by Iran, which caused stock markets, bitcoin and oil to drop.

Oil prices, a key indicator of currency parity, fell during trade on Monday, as market participants dialled back risk premiums following Iran’s attack on Israel late on Saturday which the Israeli government said caused limited damage.

Brent futures for June delivery fell 20 cents, or 0.2%, to $90.25 a barrel while West Texas Intermediate (WTI) futures for May delivery were down 33 cents, or 0.4%, at $85.33 a barrel by 0225 GMT.

This is an intra-day update

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