The Pakistani rupee commenced trading with a slight appreciation against the US dollar, gaining 0.06% in the initial trading hours in the inter-bank market on Monday. By 10 am, the rupee was recorded at 277.78, marking an increase of Re0.16 against the greenback.
Throughout the previous week’s two sessions, the rupee exhibited relative stability against the US dollar, closing at 277.94 on Tuesday, compared to 277.93 at the week’s onset.
In a significant development, Pakistan’s economic delegation, led by Finance Minister Muhammad Aurangzeb, embarked on a journey to Washington on Sunday to engage in discussions with the International Monetary Fund (IMF) concerning a potential bailout initiative. The talks between Pakistan and the IMF are slated for this week in Washington, where the government representatives will seek approval for a new loan program. Key ministerial deliberations and events are scheduled from April 17-19.
On a global scale, the US dollar demonstrated stability on Monday, maintaining its most substantial weekly gain since 2022. Factors contributing to this stability include escalating conflicts in the Middle East and expectations of persistent high US interest rates.
Despite weekend events such as Iran’s retaliatory attack on Israel, impacting various markets, including stocks, bitcoin, and oil, the initial currency reactions seemed more influenced by receding expectations of Federal Reserve rate cuts.
Oil prices experienced a decline during Monday’s trading, attributed to reduced risk premiums post-Iran’s attack on Israel. Brent futures for June delivery dropped by 20 cents to $90.25 a barrel, while West Texas Intermediate (WTI) futures for May delivery decreased by 33 cents to $85.33 a barrel by 0225 GMT.
