Pakistani Rupee Strengthens Against US Dollar

The Pakistani rupee continued its positive trend against the US dollar, increasing by 0.09% in early trading on Monday in the inter-bank market.

At approximately 10:15 am, the rupee’s value stood at 282.47, reflecting a gain of Re0.25.

Over the preceding week, the rupee experienced further appreciation against the US dollar in the inter-bank market, climbing by Re0.73, equivalent to 0.26%.

According to the State Bank of Pakistan (SBP), the local currency concluded the previous week at 282.72, compared to its prior close of 283.45 against the dollar.

Global Market Overview

On the international front, the US dollar saw a slight recovery on Monday following disappointing US jobs data and the dismissal of a key labor official by President Donald Trump. These events prompted investors to increase their expectations for imminent interest rate cuts by the Federal Reserve.

US job growth figures released on Friday fell short of expectations for July. Furthermore, the nonfarm payrolls count for the previous two months was revised downward by a substantial 258,000 jobs, signaling a potential weakening in the labor market.

Adding to market uncertainty, President Trump dismissed Erika McEntarfer, the Bureau of Labor Statistics Commissioner, on the same day, alleging manipulation of jobs numbers.

The unexpected resignation of Fed Governor Adriana Kugler also presented President Trump with an opportunity to influence the central bank sooner than anticipated. Trump has previously voiced disagreement with the Fed’s pace of interest rate reductions.

These developments delivered a blow to the dollar, causing it to decline by over 2% against the yen and approximately 1.5% against the euro on Friday.

The dollar regained some ground against the Japanese yen on Monday, trading 0.14% higher at 147.60 yen.

The euro declined by 0.2% to $1.1560, while the sterling fell by 0.1% to $1.3263.

Against a basket of currencies, the dollar rose by 0.2% to 98.86, after a slide of over 1% on Friday.

Oil prices continued their downward trend on Monday after OPEC+ agreed to another significant production increase in September. Concerns regarding a slowing US economy, the world’s largest oil consumer, added to the downward pressure.

Brent crude futures decreased by 40 cents, or 0.57%, to $69.27 a barrel by 0115 GMT. US West Texas Intermediate crude traded at $66.96 a barrel, down 37 cents, or 0.55%, after both contracts closed approximately $2 lower on Friday.

This information reflects an intra-day update.