Pakistani Rupee Gains Slightly Against US Dollar

The Pakistani rupee saw a minor increase against the US dollar, rising by 0.01% in the inter-bank market on Friday.

At the market’s close, the rupee’s value was recorded at 281.90, reflecting an improvement of Re0.2 against the dollar. This marked the eleventh successive gain for the rupee versus the US currency.

The previous day, Thursday, the rupee had concluded trading at 281.92.

Global Market Overview

On the international front, the US dollar remained stable on Friday, heading towards a robust weekly performance as investors looked forward to a speech by Federal Reserve Chair Jerome Powell that could influence the short-term direction of interest rates.

A surprisingly weak jobs report for July, along with significant downward adjustments to hiring figures for May and June, had raised hopes for an imminent decrease in borrowing costs. Traders were even anticipating a substantial rate cut for the upcoming meeting in September.

However, more cautious statements from other policymakers and economic data indicating inflationary pressures have moderated these expectations. Currently, traders are estimating a 75% likelihood of a 25-basis-point rate cut in September, a decrease from 92% the previous week, according to the CME FedWatch tool.

Federal Reserve officials seemed hesitant about a rate cut next month, setting the stage for Powell’s address at the annual Jackson Hole conference in Wyoming, which began on Thursday.

This could make the dollar vulnerable following a steady but unspectacular increase over the past week. The euro was last trading at $1.1613, down 0.8% for the week, while the pound remained steady at $1.3416, a decrease of almost 1% for the week.

The dollar index, which compares the US currency to six major currencies, was at 98.61, on track for a 0.7% increase for the week, ending its two-week losing streak.

Oil Prices Remain Steady

Oil prices, a crucial indicator of currency parity, showed little change on Friday as hopes for a swift peace agreement between Russia and Ukraine diminished, positioning prices for their first weekly gain in three weeks.

Brent crude futures were down 17 cents, or 0.25%, at $67.50 a barrel by 1000 GMT. West Texas Intermediate (WTI) crude futures fell by 13 cents, or 0.2%, to $63.39.

Both contracts experienced gains of over 1% in the prior session. Brent has increased by 2.8% this week, while WTI has risen by 1%.