The Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Monday.
The local unit closed the day at 277.06, a gain of Re0.01 against the greenback.
During the previous week, the Pakistani rupee continued its marginal gain against the US dollar, appreciating 0.03% in the inter-bank market. The local unit closed at 277.07 against the greenback, a gain of Re0.09 from 277.16 it had closed at a week earlier.
Internationally, the US dollar started the week on a firm footing, hovering near a 17-month high on Monday as traders weighed receding odds of a Federal Reserve rate hike this month after soft US jobs data while fiscal worries in France left the euro vulnerable.
The euro was at $1.1246, stuck near its lowest level since May 2025 after clocking four consecutive weekly declines as France’s debt levels and concerns about political gridlock ahead of next year’s election hit the common currency.
Sterling fetched $1.3241, while the Japanese yen bought 157.69 per US dollar in early Asian hours. That left the dollar index, which measures the US currency against six major units, at 101.97.
Markets are also still reeling from last week’s bond rout, which drove global borrowing costs to multi-decade highs and pummelled French debt as investors fretted over inflation risks from soaring oil prices.
Traders are now pricing in a 78% chance of the US central bank holding rates steady in October, compared to 36% a week earlier, CME FedWatch tool showed. They still expect a hike in December and another two in the first half of 2027.
Oil prices, a key indicator of currency parity, edged lower on Monday as rising Middle East crude exports and a release of oil stocks by the Group of Seven nations boosted supplies, offsetting concerns about further damage to Gulf oil infrastructure amid the US-Israeli war on Iran.
Brent crude futures fell 66 cents, or 0.65%, to $101.59 a barrel at 0240 GMT, while US West Texas Intermediate crude was at $90.12 a barrel, down 95 cents, or 1.03%.
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