The Pakistani rupee fell somewhat versus the US dollar in early-morning trading in the interbank market on Monday, falling 0.05%.
Around 10:15 a.m., the rupee was trading at 278.05, down Re0.15.
The rupee gained 2.91% against the US dollar in the preceding week as the Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) was finalised, giving the local currency strength.
The rupee finished at 277.9 in the interbank market on Friday, with a similar increase in the open market assisting it to close between 279 and 282. The smaller disparity reflected the stability of both currency markets, and it remains a condition of the new SBA, which will be in effect for the second half of the current fiscal year.
The new programme, which many perceive as an enhancement to the Extended Fund Facility, which expired unsuccessfully at the ninth review, is subject to IMF Executive Board approval. The IMF has also verified that Pakistan’s agenda will be discussed on July 12, despite the fact that its official website calendar had not yet been modified to include Pakistan as of Monday morning.
Internationally, the US dollar was on the defensive on Monday as investors lowered their expectations for how far US interest rates would rise after US job data showed the weakest gain in two and a half years.
The US economy added 209,000 jobs last month, according to figures released on Friday, falling short of market estimates for the first time in 15 months.
The US dollar index increased 0.06% to 102.36, but it was still close to Friday’s two-week low of 102.22.
Oil prices, a crucial indicator of currency parity, fell in early Asian trade on Monday as investors remained cautious ahead of this week’s release of new economic data from top users the United States and China, while expected crude supply cuts from Saudi Arabia and Russia supported the market.