The Pakistani rupee registered marginal improvement, appreciating 0.08% against the US dollar during the opening hours of trading in the inter-bank market on Monday.
At 10:20am, the currency was hovering at 278.33, a gain of Re0.21, against the greenback.
In recent months, the domestic currency has largely been around 277-279 against the dollar as traders keep an eye on some strong positive indicators.
During the previous week, the currency settled at 278.54 against the greenback.
Globally, the US dollar declined broadly on Monday and slid against the yen in particular as investors bet on a dovish tone emerging in the Federal Reserve’s July policy meeting minutes and Chair Jerome Powell’s upcoming speech at Jackson Hole.
The minutes, due on Wednesday, and Powell’s speech on Friday are likely to be the main drivers of currency movement for the week, which will also see inflation data from Canada and Japan alongside Purchasing Managers’ Index readings across the US, euro zone and UK.
Against a basket of currencies, the dollar lost 0.24% to 102.21, not far from a seven-month low of 102.15. Traders have fully priced in a 25-basis-point rate cut from the Fed in September, with a 24.5% chance of a 50 bp move.
Oil prices, a key indicator of currency parity, eased in early Asian trading on Monday as fears of weaker demand in top oil importer China weighed on market sentiment while investors focus on the progress of ceasefire talks in the Middle East, which could reduce supply risks.
Brent crude futures dropped 13 cents, or 0.2%, to $79.55 per barrel by 0032 GMT. US West Texas Intermediate crude futures slid 13 cents, or 0.2%, to $76.52 a barrel.
Both benchmarks fell nearly 2% last Friday as investors tempered expectations of demand growth from China, but ended the week largely unchanged from a week earlier after a batch of US data last week showed inflation was moderating and retail spending was robust.
This is an intra-day update
