According to the State Bank of Pakistan, this marked the second consecutive week of marginal improvement, signaling a period of relative calm in the currency market. Last week, the rupee ended at 279.71, posting a six paisa gain, or a 0.02 percent rise.
Market watchers say the rupee’s performance reflects measured stability rather than sudden strength, as demand and supply remain largely balanced in the interbank space.
On the global stage, currency markets reacted sharply to political developments in Japan. Following Sunday’s election and the decisive victory of Prime Minister Sanae Takaichi, the Japanese yen rebounded during Asian trading on Monday. The move snapped a six-day losing streak, as investors welcomed expectations of fiscal support aimed at lifting stock markets.
The yen erased an intraday loss of 0.3 percent, which had pushed it to a two-week low and climbed as much as 0.7 percent before easing slightly. At last count, it was trading 0.3 percent higher at 156.76 per dollar.
The Japanese currency also regained ground against other major currencies after recently touching record lows against the Swiss franc and hovering near its weakest level against the euro since the single currency’s launch.
Meanwhile, the US Dollar Index remained steady at 97.629 at the start of the week. Investor attention is now firmly fixed on a series of key economic releases from Washington, including retail sales data, inflation figures, and a delayed jobs report due on Wednesday. These indicators are expected to shape near-term sentiment in global currency markets.
For now, traders appear cautious, choosing to wait and watch as both political signals and economic data guide the next move in foreign exchange markets.
