The Pakistani rupee experienced a slight dip against the US dollar, depreciating by 0.03% in the inter-bank market on Monday, settling at 278.30, according to the State Bank of Pakistan (SBP).
Following consecutive weeks of gains, the rupee saw this marginal decline of Re0.09 against the greenback, closing at 278.21, compared to the previous week’s 278.12.
In significant news, reports from Business Recorder indicated that the government proposed to the International Monetary Fund (IMF) an increase in the income tax exemption threshold up to Rs1 million for the salaried class. Additionally, there were proposals to rationalize tax rates for individuals by eliminating the distinction between salaried and non-salaried categories and reducing the number of rate slabs.
Internationally, the US dollar remained relatively stable as investors awaited further signals regarding the US interest rate trajectory amid cautious remarks from Federal Reserve officials, despite signs of easing inflation.
Oil prices, a crucial factor influencing currency dynamics, continued to rise amid political uncertainties in major oil-producing nations. Brent crude rose to $84.39 a barrel, its highest level since May 10, while US West Texas Intermediate (WTI) crude for June climbed to $80.29 a barrel.
In the open market, the Pakistani rupee gained 5 paise for buying against the USD but lost 4 paise for selling, closing at 276.96 and 279.54, respectively. Against other major currencies like the Euro, UAE Dirham, and Saudi Riyal, the rupee experienced slight fluctuations in both buying and selling rates.
