Rupee Strengthens Slightly Against US Dollar

The Pakistani rupee saw a marginal increase in value versus the US dollar, gaining 0.03% in Thursday’s interbank trading session.

At the close of trading, the rupee’s value was recorded at 283.86, reflecting an improvement of Re0.09. This follows Wednesday’s closing rate of 283.95.

Global Currency Market Overview

The US dollar experienced some instability on Thursday. Optimism arose from a newly established trade agreement between the US and Vietnam, raising expectations for additional agreements prior to a tariff deadline on July 9. Investors are also closely monitoring payroll data to anticipate the Federal Reserve’s upcoming policy decisions.

The British pound exhibited a slight recovery after a significant decrease in the previous session. This occurred as British Prime Minister Keir Starmer’s office promptly expressed strong support for Finance Minister Rachel Reeves, aiming to ease investor anxieties regarding the UK’s financial stability.

On Wednesday, the pound underwent a decline of nearly 1%, and British government bonds also decreased in value. This was triggered by Reeves’ emotional address in parliament, which occurred a day after the government reversed its stance on welfare changes, leading to renewed worries about Britain’s economic condition. The pound was last valued at $1.3647, showing a small rise during Asian trading hours. Meanwhile, the euro remained stable at $1.1806, nearing its highest point since September 2021, which it reached earlier in the week. The yen saw a slight increase, reaching 143.56 per dollar.

The dollar index, which compares the US dollar to six other major currencies, stood at 96.701, remaining close to its lowest levels in three and a half years, a position it has held throughout the week. The index is currently on track for a weekly decrease of 0.5%.

Market participants are keenly awaiting the US Labor Department’s comprehensive employment report for June. This report is scheduled to be released on Thursday before the July 4 holiday, following recent data indicating a decrease in private payrolls for the first time in over two years during June.

Oil Prices Decline Amid Demand Concerns

Oil prices experienced a decline on Thursday, reversing the gains made in the prior session. This downturn was attributed to concerns regarding weak demand in the United States. Recent government figures revealed an unexpected increase in crude inventories in the US, which is the world’s largest consumer of crude oil.

Brent crude futures decreased by 24 cents, or 0.35%, reaching $68.87 a barrel as of 0044 GMT, after a 3% increase on Wednesday. US West Texas Intermediate crude also fell by 24 cents, or 0.36%, to $67.21 a barrel, following a previous rise of 3.1%.