Intra-day update: rupee largely stable against US dollar – Markets

The Pakistani rupee remained largely unchanged against the US dollar, depreciating 0.01% during the opening hours of trading in the inter-bank market on Monday.

At 10am, the rupee was hovering at 278.23, a fall by Re0.02 against the greenback.

During the previous week, the rupee closed unchanged at 278.21 against the US dollar as compared to the week earlier when the local unit had stood at the same level.

In recent weeks, the domestic currency has largely been around 277-278 against the dollar as Pakistan moves forward with its plan to win a longer and longer International Monetary Fund (IMF) bailout programme.

Pakistan authorities and the IMF have made “significant progress” towards reaching a staff-level agreement (SLA) on a new programme, according to an end-of-mission statement posted on the lender’s website.

Globally, the US dollar made a steady start to the week, as investors were focused on US, European and Japanese inflation data to guide the global interest rate outlook.

Foreign exchange trade has been dominated by the hunt for “carry” in recent months, punishing low-rate currencies and supporting the dollar while US data has blown hot and cold and dented policymakers’ confidence on the rates outlook.

The dollar had fallen back after data showed a slowdown in consumer price rises in April and disappointing retail sales, before strengthening last week thanks to better-than-expected PMI survey data.

Oil prices, a key indicator of currency parity, were in a holding pattern in early Asian trading on Monday as markets awaited an OPEC+ meeting on June 2 where producers are expected to discuss maintaining voluntary output cuts for the rest of the year.

The Brent crude July contract inched up 11 cents to $82.23 a barrel by 0036 GMT.

The more-active August contract LCOc2 rose 13 cents to $81.97.

US West Texas Intermediate (WTI) crude futures rose 13 cents to $77.85.

Public holidays in the US and UK on Monday were expected to keep trading relatively thin.

This is an intra-day update