Rupee Gains Ground Against US Dollar in Early Trading

The Pakistani rupee continued its positive momentum against the US dollar, experiencing a 0.08% increase in value during the initial trading hours in the inter-bank market on Thursday.

As of 10:30 am, the rupee was trading at 282.72, reflecting an appreciation of Re0.23. The previous day, Wednesday, the rupee had closed at 282.95.

Globally, the US dollar was near its highest level in two months on Thursday. This occurred after the Federal Reserve Chair, Jerome Powell, maintained a steady stance on interest rates in a closely monitored policy announcement, providing little indication about potential rate cuts.

The US dollar is also poised to record its first monthly gain this year. This is supported by a hawkish Federal Reserve and the strength of the US economy, along with reduced uncertainty regarding tariffs due to recent trade agreements made by Washington.

Against a collection of currencies, the dollar remained stable at 99.77, close to its two-month peak of 99.987 from the previous session. The dollar index is on track for a monthly gain exceeding 3%.

Earlier in the year, concerns about US President Donald Trump’s tariff policies and the dollar’s weakening had negatively impacted the currency. However, these concerns have since diminished, revitalizing the dollar’s performance.

The recent strengthening of the dollar followed the Fed’s policy decision on Wednesday, where Powell restated that it was too early to consider easing interest rates.

Oil prices, an important indicator of currency values, rose for the fourth consecutive day on Thursday. This increase was driven by investor concerns over potential supply disruptions amid President Trump’s efforts to quickly resolve the war in Ukraine and the threat of tariffs on countries purchasing Russian oil.

Brent crude futures for September delivery increased by 27 cents, or 0.4%, to $73.51 a barrel. US West Texas Intermediate crude for September rose by 37 cents, or 0.5%, to $70.37 a barrel.

Both benchmarks had seen a 1% increase on Wednesday. The more active Brent October contract experienced a rise of 29 cents, or 0.4%, reaching $72.76.

This is an intra-day market update.