Pakistani Rupee Shows Slight Appreciation Against US Dollar

The Pakistani rupee experienced a marginal recovery against the US dollar in the inter-bank market on Friday, gaining 0.04%.

At the market’s close, the rupee’s value was recorded at 284.46, reflecting an increase of Re0.1. This compares to the previous day, Thursday, when the currency closed at 284.56.

Global Market Influences

Worldwide, the US dollar strengthened on Friday due to growing indications of instability in the global trade environment. Former US President Donald Trump’s announcement of additional tariffs and intentions to impose broad levies of 15% to 20% on numerous trade partners contributed to this.

Initially, most currencies maintained stable positions early in the Asian trading session. However, the dollar subsequently increased in value following Trump’s recent remarks, which heightened uncertainty surrounding his evolving trade policies.

The Canadian dollar experienced a significant decline, depreciating by over 0.5% to reach 1.3726 per US dollar. This occurred after Trump declared a 35% tariff on goods imported from Canada, scheduled to take effect on August 1.

On Thursday, Trump also suggested that the European Union might receive a letter concerning tariff rates by Friday, thereby casting doubt on the advancement of trade discussions between Washington and the EU.

The euro weakened by 0.25% to $1.1671 and is currently on track for a weekly decrease of almost 1%.

Similarly, the Australian dollar, which is sensitive to risk, decreased by 0.31% to $0.6568 as the overall market sentiment turned negative.

Oil Prices Rise Amid Geopolitical Factors

Oil prices, which serve as a crucial indicator of currency parity, increased on Friday following Trump’s indication of an upcoming announcement regarding Russia. This raised the potential for further sanctions against the major oil producer, although tariff concerns and increasing OPEC+ output tempered these gains.

Brent crude futures saw an increase of 19 cents, or 0.28%, reaching $68.83 a barrel as of 0408 GMT.

US West Texas Intermediate crude also experienced a rise of 24 cents, or 0.36%, to $66.81 a barrel.

Over the course of the week, Brent has increased by 0.8%, while WTI has decreased by 0.2% thus far.