On Monday, the Pakistani rupee saw a slight decrease in the interbank market compared to the US dollar. According to the State Bank of Pakistan, the local unit closed at Rs278.3 after a decrease of 9 paisas from the US dollar.
Simultaneously, the Pakistan Stock Exchange is witnessing early session fluctuations.
The PSX ended the first day of the business week in the negative zone as investors displayed caution ahead of the rollover week and the upcoming federal budget. The KSE-100 index witnessed a significant decline, falling by 465 points to close at 75,570 points.
Also Read: Asia shares creep higher as US, EU inflation data loom
The slight rise in the dollar's value indicates ongoing volatility in the currency market. Dealers attribute this fluctuation to a range of factors, including international market trends, economic policies, and investor sentiments. The interbank market, where banks trade currencies, often serves as a barometer for broader economic conditions.
Market analysts attribute the decline to investor apprehension surrounding the anticipated financial measures and economic policies expected in the upcoming budget. This uncertainty has led to a subdued trading environment, with many investors adopting a wait-and-see approach.
Also Read: PSX continues to witness record-breaking streak
Globally, Asian shares edged higher on Monday as investors braced for a busy week of data which culminates in a key U.S. inflation report that could set the stage for a cut in interest rates there, albeit not for a few months yet.
Holidays in the United States and UK made for thin trading ahead of Friday's figures on core personal consumption expenditures (PCE), the Federal Reserve's preferred measure of inflation. Median forecasts are for a rise of 0.3% in April, keeping the annual pace at 2.8%, with risks on the downside.
