Rupee Strengthens Against US Dollar in Early Trading

The Pakistani rupee continued its positive momentum against the US dollar, appreciating by 0.08% in the initial hours of inter-bank market trading on Thursday.

At approximately 10:30 am, the rupee’s value stood at 282.72, reflecting a gain of Re0.23.

The currency had closed at 282.95 on the previous day, Wednesday.

Globally, the US dollar hovered near a two-month high on Thursday. This came after the Federal Reserve Chair Jerome Powell maintained a cautious approach regarding interest rates in a closely monitored policy announcement, providing limited indication about potential rate cuts.

The dollar was also on track to record its first monthly gain this year, supported by a hawkish stance from the Fed and the resilience of the US economy. Moreover, uncertainties surrounding tariffs have started to diminish due to recent trade agreements secured by Washington.

Against a collection of currencies, the dollar remained stable at 99.77, close to the two-month peak of 99.987 reached in the prior session.

The dollar index was poised for a monthly increase exceeding 3%.

Earlier in the year, US President Donald Trump’s unpredictable tariff policies and concerns about the dollar’s stability had negatively impacted the currency, resulting in its worst start to the year since the floating exchange rate era. However, these concerns have since eased, revitalizing the dollar.

The dollar’s recent surge is attributed to the Fed’s policy decision on Wednesday, where Powell reiterated that it was still too early to consider easing interest rates.

Oil prices, a crucial indicator of currency parity, increased for the fourth consecutive day on Thursday. This rise occurred amid investor concerns about potential supply disruptions, driven by US President Donald Trump’s efforts to expedite a resolution to the war in Ukraine and threats of tariffs on nations purchasing Russian oil.

Brent crude futures for September delivery, set to expire on Thursday, rose by 27 cents, or 0.4%, reaching $73.51 per barrel by 0028 GMT. Meanwhile, US West Texas Intermediate crude for September increased by 37 cents, or 0.5%, reaching $70.37 per barrel.

Both benchmarks experienced a 1% increase on Wednesday.

The more active Brent October contract increased by 29 cents, or 0.4%, reaching $72.76.

This information reflects an intra-day update.