The Pakistani rupee experienced a minor upturn against the US dollar, appreciating by 0.05% in the inter-bank market. At 10 am, the rupee stood at 278.17, marking a gain of Re0.14 against the greenback.
During the preceding week, the rupee witnessed a slight downturn vis-à-vis the US dollar, closing lower by Re0.37 or 0.13%. The local currency concluded the week at 278.31, as opposed to the 277.94 closure against the greenback the week before.
In a significant development, reports surfaced regarding the International Monetary Fund (IMF) not including Pakistan on the agenda of its executive board meetings until May 1. Despite the schedule of the executive board meeting set for April 29 and May 1, a review under the $3-billion stand-by arrangement (SBA) program with Pakistan is notably absent from the agenda. This review’s approval by the executive board holds the potential for Pakistan to receive approximately $1.1 billion, constituting the final tranche of the $3-billion SBA initiated in June 2023.
On a global scale, the US dollar remained robust, maintaining its position near recent highs following last week’s notable policy and geopolitical developments. Despite its trade-weighted index surpassing 106, it retreated slightly from the five-month highs attained last week. This shift was prompted by remarks from Federal Reserve officials and unexpectedly high inflation data, leading to a recalibration of rate cut expectations. Furthermore, a reduction in tensions in the Middle East, which had previously bolstered the dollar, gold, and crude oil prices significantly while impacting stock markets negatively, contributed to a reduction in volatility.
In the realm of oil markets, prices experienced a decline on Monday, driven by renewed attention to market fundamentals amidst reassurances from Israel and Iran regarding the potential escalation of hostilities in the Middle East following Israel’s recent limited strike on Iran. Brent futures saw a decrease of 67 cents, amounting to 0.77%, reaching $86.62 per barrel by 0415 GMT. Similarly, the front-month US West Texas Intermediate (WTI) crude contract for May, due to expire on Monday, dropped 63 cents, or 0.76%, settling at $82.51 per barrel. The more actively traded June contract also fell by 64 cents, reaching $81.58 per barrel.
