Rupee Gains Marginally Against US Dollar in Intra-Day Trading

The Pakistani rupee experienced a slight increase against the US dollar, rising by 0.10% in the inter-bank market during Friday’s intra-day trading session.

At approximately 10:00 am, the local currency was valued at 280.78 against the US dollar, a decrease of Re0.29 compared to the previous day’s closing rate.

On the preceding day, Thursday, the rupee had declined by 0.04%, reaching a 15-month low of 281.07 in the inter-bank market.

Globally, the US dollar saw a slight uptick on Friday, recovering from minor losses experienced the previous day. Market participants are currently analyzing the outlook for the U.S. economy, particularly in light of President Donald Trump’s inconsistent statements regarding trade agreements and potential interference with the Federal Reserve.

The U.S. currency has shown significant volatility this week, beginning with a 1% drop against major currencies on Monday following Trump’s threat to remove Fed Chair Jerome Powell for perceived insufficient interest rate cuts. However, it then surged by 1.5% the next day when Trump stated he had no intention of replacing Powell and suggested a possible de-escalation in the trade conflict with China.

Yet, the absence of tangible progress toward initiating discussions with Beijing led to a subsequent weakening of the dollar later in the week. Overall, the dollar index, which tracks the currency’s performance against six major counterparts, is projected to rise by only 0.27% for the week, potentially ending a four-week period of declines.

Investors are facing uncertainty regarding the current status of trade relations with China. Despite Trump’s assertion that direct negotiations are ongoing, Beijing stated on Thursday that it has not engaged in trade talks with Washington.

Oil prices, a crucial indicator for assessing currency parity, saw a slight increase on Friday but are still on track for a weekly decrease. This is attributed to the potential for increased supply due to a possible OPEC+ output increase and a potential ceasefire in the Russia-Ukraine conflict, coinciding with conflicting U.S. tariff signals that are limiting the demand outlook.

Brent crude futures increased by 5 cents to $66.60 a barrel, heading for a 2% weekly loss.

U.S. West Texas Intermediate (WTI) crude experienced a rise of 6 cents to $62.85 a barrel but is projected to decline by 2.9% for the week.

According to Russian Foreign Minister Sergey Lavrov in an interview with CBS News, the United States and Russia are making headway toward resolving the conflict in Ukraine, although certain specific details of an agreement still require resolution.

This is an intra-day update.