The Pakistani rupee strengthened against the US dollar, appreciating 0.07% during the opening minutes of trading in the inter-bank market on Monday.
At 10am, the local currency was hovering at 280.23, a gain of Re0.19 against the greenback.
During the previous week, the Pakistan rupee posted a marginal gain, appreciating by Re0.10 or 0.04% against the US dollar in the inter-bank market.
The local unit closed at 280.42, against 280.52 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
Globally, the US dollar steadied on Monday after two weeks of selling, ahead of a week crammed with central bank meetings and headlined by the US Federal Reserve, where an interest rate cut is all but priced in, but a divided committee makes for a wild card.
Besides Wednesday’s Fed decision, central bank policy meetings are also due in Australia, Brazil, Canada and Switzerland, though no moves are expected outside of the Fed.
The euro, which has been trading in a reasonably tight range since June, hovered at $1.1644. The yen , which has found a footing after sliding through November, traded at 155.28 a dollar.
Analysts expect a “hawkish cut”, where the language of the statement, median forecasts and Chair Jerome Powell’s press conference point to a higher bar on further rate reduction.
That could support the dollar if it pushes investors to dial back expectations for two or three rate cuts next year.
Oil prices, a key indicator of currency parity, hovered at two-week highs on Monday as investors expect a Federal Reserve interest rate cut this week that will lift economic growth and energy demand while eyeing geopolitical risks that threaten oil supplies from Russia and Venezuela.
Brent crude futures rose 4 cents, or 0.06%, to $63.79 a barrel by 0008 GMT, while U.S. West Texas Intermediate crude was at $60.15 a barrel, up 7 cents, or 0.12%.
Both contracts closed Friday’s session at their highest levels since November 18.
This is an intra-day update
