Pakistani rupee exhibited a slight uptick against the US dollar, appreciating by 0.12% in the inter-bank market. At 10:15 am, the rupee stood at 279, marking an increase of Re0.34 compared to the previous rate against the greenback.
Throughout the previous week, the rupee experienced marginal gains, with a rise of Re0.13 or 0.04%, settling at 279.34 against the US dollar in the inter-bank market.
Last week, amidst a crucial voting period in Pakistan on February 8, provisional results released by the Election Commission of Pakistan (ECP) indicated the lead of independent candidates, particularly those affiliated with the Pakistan Tehreek-e-Insaf. However, with no single party securing a simple majority, the prospect of a coalition government looms.
Internationally, the US dollar index remained steady around 104, while the offshore Chinese yuan weakened by nearly 0.1% to 7.2239. Many Asian markets, including Japan and China, remained closed on Monday due to local holidays.
All eyes are on the potential easing of policy rates by the US Federal Reserve, with expectations influenced by upcoming inflation data scheduled for Tuesday. Investors are currently factoring in a 37.5% likelihood of the Fed maintaining rates unchanged in May, a notable increase from previous estimations.
Insights from US Fed policymakers later in the day will be closely monitored for indications regarding the future trajectory of policy rates.
Furthermore, early Asian trade on Monday witnessed a decline in oil prices following reports of concluded strikes in southern Gaza by Israel, easing concerns over Middle East supply disruptions. Brent crude futures dropped by 0.5% to $81.76 a barrel, while U.S. West Texas Intermediate crude futures were 0.6% lower at $76.38 a barrel as of 0135 GMT.
Last week, geopolitical tensions, including fears of a wider Israel-Palestinian conflict and potential oil supply disruptions in the Middle East, led to a roughly 6% surge in oil prices.
