Rupee sees minor improvement against US dollar

At 9:50am, the rupee was hovering at 280.50, an increase of Re0.07 in the inter-bank market.

During the previous week, the rupee declined against the US dollar as it closed 0.63% or Rs1.77 lower in the inter-bank market.

The local currency started the week at 278.80 level, but closed on Friday at 280.57.

In a related development, remittances inflows are likely to be back on track with a decent growth from Gulf countries as the local currency marked a significant comeback against the US dollar in the inter-bank and open markets in the last few weeks, experts told Business Recorder.

Additionally, the caretaker government has announced an incentive scheme of Rs80 billion for encouraging overseas Pakistanis to send remittances to their relatives in their homeland without any charges.

Internationally, the US dollar inched broadly higher in cautious trade on Monday and held near 150 yen as traders looked to a policy decision by the Bank of Japan later in the week, alongside other major central bank meetings and a slew of economic data releases globally.

Data on Friday showed US consumer spending surged in September as households boosted purchases of motor vehicles and travelled, keeping spending on a higher growth path heading into the fourth quarter.

The dollar index edged 0.03% higher to 106.63, as investors assessed what the recent run of resilient US economic data would mean for the Fed’s rate outlook.

Oil prices, a key indicator of currency parity, slipped more than 1% on Monday as investors adopted caution ahead of a U.S. Federal Reserve policy meeting and China’s manufacturing data due this week, offsetting support from tension in the Middle East.

Brent crude futures dropped 1.6%, or $1.11, to $89.37 a barrel by 0350 GMT, while U.S. West Texas Intermediate crude was down 1.2%, or $1.34, at $84.20 a barrel.