Rupee Uptrend Continues as Dollar Slips in Global Trade
The rupee uptrend continues as the local currency showed marginal strength on Monday. It gained 0.07% during early trade in the inter-bank market. As a result, it moved to 280.43 against the US dollar by 10am.
The rupee also posted a small rise last week. It closed at 280.62, compared with 280.72 in the previous week. The State Bank of Pakistan confirmed this improvement in its latest update.
Global Dollar Trends
International markets remained steady during the morning session. However, traders stayed cautious due to rising expectations of intervention in the Japanese yen. A market holiday in Tokyo reduced activity and pushed the yen slightly lower to 156.71 per dollar.
Japan’s currency has struggled due to low interest rates and flexible fiscal policies. It did recover from recent lows last week after officials issued strong warnings about possible yen buying. Market watchers believe intervention may occur if the yen moves between 158 and 162. The thin Thanksgiving trading week may create the right moment for such action.
A key government adviser in Japan shared support for intervention during a TV appearance. He said authorities can act to limit the impact of a weakening yen on the broader economy.
The euro also remained stable at $1.1506. Traders did not react strongly despite growing expectations of a US interest rate cut in December. Meanwhile, the dollar index stayed firm at 100.25.
Oil Price Impact
Oil prices continued to slide on Monday. This trend followed last week’s declines as peace talks between Russia and Ukraine showed progress. Therefore, traders feared that reduced tensions could lead to lifted sanctions and increased oil supply.
Brent crude dropped to $62.42 per barrel. West Texas Intermediate slipped to $57.91. Both benchmarks fell around 3% last week. They also touched their lowest levels since late October, highlighting the market’s concern over potential new supply.
Analysts say weaker oil prices can influence currency performance. Lower energy costs may reduce pressure on import-heavy economies and support gradual currency stability.
