Pakistani Rupee Shows Marginal Stability Against US Dollar

During the initial hours of trading on Monday, the Pakistani rupee exhibited relative stability against the US dollar, experiencing a slight appreciation of 0.01% in the inter-bank market.

As of 10:05 am, the domestic currency was trading at 281.63, reflecting a modest increase of Re0.03 compared to the greenback.

Over the preceding week, the rupee recorded a minor gain against the US dollar, increasing by Re0.05 or 0.02% in the inter-bank market.

According to the State Bank of Pakistan (SBP), the local currency concluded the week at 281.66, in comparison to the previous week’s closing value of 281.71 against the US dollar.

Global Market Overview

In international markets, the US dollar experienced a reduction in its four-week gains during early Asian trading. This occurred as markets absorbed a surprise downgrade in the US government’s credit rating amid persistent trade tensions.

Last week, the US dollar strengthened by 0.6% against major currencies following a temporary trade truce between the United States and China, which had alleviated concerns about a potential global recession. However, recent economic data indicates rising import prices and declining consumer confidence.

Moody’s Investors Service downgraded America’s sovereign credit rating by one level on Friday, joining other major ratings agencies in expressing concerns about the nation’s escalating $36 trillion debt.

US Treasury Secretary commented that the President may impose tariffs on trading partners who do not negotiate in “good faith.”

Furthermore, there is internal opposition within the President’s party regarding a comprehensive tax cut bill, which is projected to augment the national debt by an estimated $3 trillion to $5 trillion over the next ten years.

The US dollar decreased by 0.3% to 145.22 yen.

Additionally, the greenback declined by 0.2% against the Swiss franc, another safe-haven currency.

Oil Market Update

Oil prices, a crucial indicator of currency parity, showed minimal movement on Monday. Investors are closely monitoring the progress of Iran-US nuclear discussions and forthcoming economic data from China to evaluate the impact on its commodities demand, particularly in light of trade disputes with the United States.

Brent crude futures saw a slight decrease of 5 cents, reaching $65.36 a barrel as of 0022 GMT, while US West Texas Intermediate crude was priced at $62.52 a barrel, up by 3 cents.

The front-month June WTI contract is set to expire on Tuesday, with the more active July contract declining by 4 cents to $61.93 a barrel.

Both contracts had increased by over 1% the previous week following an agreement between the US and China, the world’s leading economies and oil consumers, to implement a 90-day suspension of their trade war. During this period, both nations are expected to significantly reduce trade tariffs.

This information reflects an intra-day update.