In the interbank market on Monday, the Pakistani rupee appreciated by 0.09% against the US dollar, rising by 25 paisas to reach 280.27.
According to the State Bank of Pakistan (SBP), the rupee closed last week at 280.52 after gaining 10 paisas against the dollar.
Internationally, the Japanese yen strengthened on Monday, supported by remarks from Bank of Japan (BOJ) Governor Kazuo Ueda, who kept open the possibility of a short-term interest rate hike. Meanwhile, the US dollar weakened at the start of the month as investors increased bets on a potential US interest rate cut this month.
Ueda spoke more positively about Japan’s economy and said that the central bank will consider the “benefits and drawbacks” of an interest rate hike in its upcoming December policy meeting. This boosted the Japanese currency, which rose 0.4% to hit a session high of 155.49 per dollar.
In broader currency markets, the US dollar weakened as investors prepared for a crucial month that may include the Federal Reserve’s final rate cut of the year and confirmation of Fed Chair Jerome Powell’s dovish successor.
The euro inched up 0.04% to $1.1605, while the British pound last traded at $1.3239.
Against a basket of major currencies, the US dollar dipped 0.05% to 99.39, after recording a 0.7% decline last week.
