The Pakistani rupee continued to march upwards against the US dollar, appreciating 0.09% during the opening hours of trading in the inter-bank market on Monday.
At 10am, the currency was hovering at 281.80, a gain of Re0.26.
The rupee has maintained a positive trajectory against the greenback in recent days on account of improved sentiment in the currency market amid an ongoing crackdown by law enforcement agencies against illegal currency dealers and smugglers.
During the previous week, the Pakistani rupee continued its merry run against the US dollar in the inter-bank market as it gained Re0.41 or 0.14%.
The local unit closed at 282.06, against 282.47 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
Internationally, the US dollar dithered on Monday ahead of a key meeting between US President Donald Trump and his Ukrainian counterpart Volodymyr Zelenskiyy, while investors also looked ahead to the Federal Reserve’s Jackson Hole symposium for more policy clues.
Currency moves were largely subdued in the early Asia session, though the dollar steadied after last week’s fall as traders further pared back bets of a jumbo Fed cut next month.
The euro was little changed at $1.1705, while sterling edged up 0.07% to $1.3557. Against a basket of currencies, the US dollar advanced slightly to 97.85, after losing 0.4% last week.
Markets are now pricing in an 84% chance the Fed would ease rates by a quarter point next month, down from 98% last week, after a raft of data including a jump in US wholesale prices last month and a solid increase in July’s retail sales figures dimmed the prospect of an oversized 50-basis-point cut.
The main event for investors on Monday is a meeting between Trump and Zelenskiy, who will be joined by some European leaders, as Washington presses Ukraine to accept a quick peace deal to end Europe’s deadliest war in 80 years.
Trump is leaning on Zelenskiy to strike an agreement after he met Kremlin chief Vladimir Putin in Alaska and emerged more aligned with Moscow on seeking a peace deal instead of a ceasefire first.
Oil prices, a key indicator of currency parity, slipped on Monday as the US did not exert more pressure on Russia to end the Ukraine war by implementing further measures to disrupt Russian oil exports after the presidents from both countries met on Friday.
Brent crude futures dropped 26 cents, or 0.39%, to $65.59 a barrel by 0028 GMT while US West Texas Intermediate crude was at $62.62 a barrel, down 18 cents, or 0.29%.
This is an intra-day update
