Intra-day update: rupee strengthens marginally against US dollar – Markets

The Pakistani rupee strengthened against the US dollar, appreciating 0.13% in the opening hours of trading against the US dollar in the inter-bank market on Monday.

At 9:50am, the rupee was hovering at 278.03, a gain of Re0.36 against the greenback.

During the previous week, the rupee registered a slight decline against the US dollar as it settled lower by Re0.08 or 0.2%. The local unit ended at 278.39, against 278.31 it had closed the week earlier against the greenback.

The rupee started the week with a minor loss but remained largely stable in the next two sessions, followed by a marginal loss in the fourth session. Friday’s session was positive for the local currency as it gained Re0.09 that day.

In a key development, the International Monetary Fund (IMF) said that its Executive Board would meet on April 29 (today) to discuss the approval of $1.1-billion funding for Pakistan.

The inflow from the IMF will give some support to foreign exchange reserves held by the State Bank of Pakistan (SBP), which fell below $8 billion as of April 19 due to external debt repayments.

Internationally, the Japanese yen suddenly jumped against the US dollar on Monday, with traders on high alert for signs of intervention by Japanese authorities to boost the currency that is languishing near 34-year lows.

The dollar fell sharply to 156.55 yen from as high as 160.245, and it was not immediately clear what was behind the move.

Traders are on edge for any signs of action from Tokyo to prop up a currency that has fallen 11% against the dollar so far this year.

Oil prices, a key indicator of currency parity, fell in early Asian trading on Monday, erasing gains from Friday as Israel-Hamas peace talks in Cairo eased fears of a wider conflict in the Middle East and US inflation data further dimmed the prospects of interest rate cuts anytime soon.

Brent crude futures fell by as much as $1, or 1.1% to $88.50 a barrel before ticking back up to $88.55 at 0149 GMT. West Texas Intermediate (WTI) futures were down 84 cents, or 1%, at $83.01 a barrel.

This is an intra-day update