Pakistani Rupee Gains Slightly Against US Dollar

The Pakistani rupee experienced a slight recovery against the US dollar, increasing by 0.07% during Thursday’s interbank trading session.

At approximately 10:00 AM, the local currency was valued at 283.53, reflecting an increase of Re0.19 against the US dollar.

The rupee had concluded the previous day, Wednesday, at 283.72.

Global Market Influences

On the international stage, the US dollar weakened to its lowest levels in several years against the euro and Swiss franc. This decline was driven by concerns surrounding the future autonomy of the U.S. Federal Reserve, which has impacted confidence in the nation’s monetary policy.

According to a report from the Wall Street Journal, former U.S. President Donald Trump had considered the possibility of nominating a replacement for Federal Reserve Chair Jerome Powell by September or October, with the intention of undermining his authority.

Trump had previously criticized Powell for not implementing substantial interest rate reductions, while Powell emphasized to the Senate the need for a cautious approach to policy, citing the potential inflation risks associated with Trump’s tariff strategies.

Market expectations for a rate cut at the Federal Reserve’s upcoming meeting in July have risen to 25%, compared to just 12% the previous week. Furthermore, markets are anticipating 64 basis points of rate cuts by the end of the year, up from approximately 46 basis points last Friday.

Currently, the dollar is facing widespread pressure, with the euro rising by 0.4% to $1.1710, marking its highest level since September 2021. The breach of resistance at $1.1692 has opened the door for a move towards the next chart target at $1.1909.

The dollar also depreciated by 0.4% against the yen, reaching 144.62, while the dollar index fell to its lowest point since early 2022 at 97.401.

Trump’s tariff policies are also receiving renewed attention as the deadline for trade agreements approaches on July 9.

Oil Prices Rise

Oil prices, which serve as a crucial indicator of currency parity, experienced a slight increase, building upon gains from the previous day. A larger-than-expected decrease in U.S. crude inventories indicated strong demand, while investors remained vigilant regarding the Iran-Israel ceasefire and overall stability in the Middle East.

Brent crude futures increased by 15 cents, or 0.2%, to $67.83 per barrel as of 0330 GMT. U.S. West Texas Intermediate (WTI) crude rose by 20 cents, or 0.3%, to $65.12 per barrel.

Both benchmarks saw gains of nearly 1% on Wednesday, recovering from earlier losses in the week after data demonstrated resilient U.S. demand.

This information constitutes an intra-day market update.