The Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Monday.
At close, the local currency settled at 279.46, a gain of Re0.01 against the greenback.
During the previous week, the Pakistan rupee posted marginal gain as it appreciated by Re0.09 or 0.03% against the US dollar in the inter-bank market.
The local unit closed at 279.47, against 279.56 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
Pakistan’s headline inflation clocked in at 7% on a year-on-year (YoY) basis in February 2026, the highest since October 2024, showed Pakistan Bureau of Statistics (PBS) data on Monday, a reading in line with the Ministry of Finance’s estimate of 6-7%.
The consumer price index (CPI) was recorded at 5.8% in January 2026. The CPI stood at 1.5% in February 2025.
The Ministry of Finance commenced a kick-off meeting with the International Monetary Fund (IMF) Mission, formally initiating discussions on the third review under the Extended Fund Facility (EFF) programme and the second review under the Resilience and Sustainability Facility (RSF).
“An IMF mission led by Iva Petrova has started discussions with the authorities in Karachi and Islamabad on the third review of Pakistan’s EFF arrangement and the second review of the RSF,” Mahir Binici, Resident Representative in Pakistan, told Business Recorder.
Globally, the euro slid, Swiss franc rose and dollar jumped on Monday as investors sought safety after the US and Israel bombed Iran, killing Supreme Leader Ayatollah Ali Khamenei and raising the risk of protracted conflict in the Middle East.
The franc climbed as much as 0.4% to 0.7661 a dollar and shot 0.6% higher to its strongest since 2015 on the euro at 0.9030 in early Asian trade, before paring gains.
The Israeli military said its air force killed Khamenei and his death was confirmed by Iranian state media, setting off a high-stakes succession race.
Attacks extended into Monday after Iran hit back, with the Iranian Revolutionary Guard saying it had struck three US and British oil tankers, while blasts were reported over Dubai and Doha.
After knee-jerk appreciation, the yen weakened 0.2% to 156.235 yen against the dollar as traders digested the effect of the jump in energy prices on oil imports, while assessing what the conflict could mean for interest rates.
The euro fell 0.3% to $1.1784 and sterling slid 0.3% to $1.3451 on the potential for disruption to energy supply in Europe.
The risk-sensitive Australian dollar tumbled as much as 1.2% before paring declines to 0.3% and was last trading at $0.7096.
The New Zealand dollar was last down 0.2% at $0.5979 after retracing an earlier decline of 0.8%.
China’s yuan in offshore trade was 0.1% weaker at 6.868 yuan to the dollar.
Currencies of exporters such as Canada and Norway were steady in Asian morning trade.
Moreover, international oil prices surged by as much as 13% on Monday after shipping in the crucial Strait of Hormuz was disrupted by retaliatory Iranian attacks following initial bombing by Israel and the United States that killed Iranian Supreme Leader Ali Khamenei.
Brent crude futures rose to as much as $82.37 a barrel, the highest since January 2025, before retreating to be up $5.41, or 7.4%, to $78.28 by 0605 GMT.
US West Texas Intermediate crude climbed to an intraday high of $75.33, up over 12% and the highest since June, though it later pared gains and was up $4.74, or 7.1%, at $71.76.
Both benchmarks jumped as a sustained exchange of counterattacks damaged tankers and sharply disrupted shipmentsin the Strait of Hormuz, a waterway between Iran and Oman that connects the Gulf to the Arabian Sea.
Inter-bank market rates for dollar on Monday
BID Rs 279.46
OFFER Rs 279.66
Open-market movement
In the open market, the PKR gained 70 paise for buying and 2 paise for selling against USD, closing at 279.33 and 280.50, respectively.
Against Euro, the PKR gained 4.80 rupees for buying and 2.57 rupees for selling, closing at 325.56 and 330.53, respectively.
Against UAE Dirham, the PKR gained 91 paise for buying and 40 paise for selling, closing at 75.55 and 76.76, respectively.
Against Saudi Riyal, the PKR gained 89 paise for buying and 21 paise for selling, closing at 73.89 and 75.14, respectively.
Open-market rates for dollar on Monday
BID Rs 279.33
OFFER Rs 280.50