Intra-day update: rupee largely stable against US dollar – Markets

Intra-day update: rupee largely stable against US dollar – Markets
Intra-day update: rupee largely stable against US dollar – Markets

The Pakistani rupee remained largely stable against the US dollar during the opening hours of trading in the inter-bank market on Monday.

At 10am, the rupee was hovering at 278.20, a gain of Re0.01, against the greenback.

During the previous week, the rupee registered a marginal increase against the US dollar as it gained Re0.18 or 0.06%.

The local unit closed at 278.21, against 278.39 it had closed the week earlier, as per the State Bank of Pakistan (SBP).

In a key development, the International Monetary Fund (IMF) mission is expected to visit Pakistan this month to discuss a new programme, the lender said on Sunday ahead of Islamabad beginning its annual budget-making process for the next financial year.

Pakistan last month completed a short-term $3 billion programme, which helped stave off sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer term programme.

“A mission is expected to visit Pakistan in May to discuss the FY25 budget, policies, and reforms under a potential new program for the welfare of all Pakistanis,” the IMF said in an emailed response to Reuters.

Globally, the US dollar was broadly steady on Monday as a soft US jobs report boosted wages that the Federal Reserve may still cut rates twice this year, while the yen was a tad weaker to start the week.

Data on Friday showed US job growth slowed more than expected in April and the increase in annual wages fell below 4.0% for the first time in nearly three years, as signs of labor market cooling raised optimism that the US central bank could engineer a “soft landing” for the economy.

Markets are now pricing in 45 basis points of cuts this year, with a rate cut in November fully priced in.

The dollar index, which measures the US currency against six rivals, was at 105.12, having touched a three-week low of 104.52 on Friday.

Oil prices, a key indicator of currency parity, edged up on Monday after Saudi Arabia raised June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil producing region.

Brent crude futures climbed 28 cents, or 0.3%, to $83.24 a barrel at 0119 GMT, while US West Texas Intermediate crude futures were at $78.40 a barrel, up 29 cents, or 0.4%.

Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signaling expectations of strong demand this summer.

This is an intra-day update

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