The Pakistani rupee registered a marginal decline of 0.02% against the US dollar in the inter-bank market on Monday.
At close, the local unit settled at 279.33 after a loss of Re0.05 against the greenback, as per the State Bank of Pakistan (SBP).
During the previous week, the rupee gained marginally as it appreciated Re0.13 or 0.04% to settle at 279.28 against the US dollar in the inter-bank market.
The shorter, but crucial week for the country saw millions of citizens in the country exercise their right to vote on February 8. As per provisional results issued by the Election Commission of Pakistan (ECP), independents, especially those associated with the Pakistan Tehreek-e-Insaf, were ahead of their rival parties.
However, a coalition government is in sight as no party could acquire a simple majority in the election.
Internationally, the US dollar index was steady near 104, while the offshore Chinese yuan weakened nearly 0.1% to 7.2239. Most Asian markets, including Japan and China, were shut on Monday on account of local holidays.
The focus remains on when the US Federal Reserve may begin easing policy rates, with Tuesday’s inflation data likely to shape expectations around the timing of the first cut.
Investors are currently pricing in a 37.5% chance that the Fed will keep rates unchanged in May, up from about 27% as of February 2.
Remarks from US Fed policymakers will also be key to watch later in the day as they could provide insight into how officials are thinking about the future trajectory of policy rates.
Oil prices, a key indicator of currency parity, slipped on Monday as investors indulged in some profit-taking after both benchmarks ended last week about 6% higher on Middle East tensions and as refining outages squeezed refined products markets.