Rupee’s Performance in Inter-Bank Market

The Pakistani rupee experienced a slight decrease against the US dollar, declining by 0.03% during Friday’s trading session in the inter-bank market.

At the session’s conclusion, the rupee was recorded at 281.06 against the US currency. Previously, on Wednesday, the rupee had closed at 280.97. The currency exchange remained closed on Thursday in observance of Labour Day.

Global Currency Market Overview

Globally, the US dollar was on track for its third consecutive week of gains. Positive signals from discussions in Washington with its trade partners, along with favorable economic data, alleviated worries about investments in the US economy.

The dollar, US bonds, and equities recovered from significant drops last month, which were triggered by concerns over a potential recession and a decline in confidence in US assets due to President Donald Trump’s tariff policies.

Wall Street saw an overnight surge, boosted by encouraging tech sector earnings and a slightly better-than-anticipated manufacturing report, despite the report indicating a continued contraction in factory activity last month.

Attention is now directed towards the upcoming release of nonfarm payrolls data later in the day.

The dollar index remained relatively stable in early Asian trading, heading for a 0.5% increase in a week characterized by reduced trading volume due to public holidays. The dollar traded at 145.53 yen, slightly below a three-week peak reached on Thursday.

Oil Prices React to Trade Talk Hopes

Oil prices saw an increase on Friday following China’s announcement that it was open to discussing tariffs with the United States. This development sparked hopes for a reduction in the trade tensions between the world’s two largest economies.

Brent crude futures increased by 49 cents, or 0.8%, to reach $62.62 per barrel by 0446 GMT. Simultaneously, US West Texas Intermediate crude futures increased by 50 cents, or 0.8%, to $59.74 per barrel.

Concerns persist that the extensive trade conflict could potentially lead the global economy into recession and negatively impact oil demand. This occurs as the OPEC+ group prepares to increase output, placing considerable strain on oil prices in recent weeks.