Pakistani Rupee Experiences Slight Appreciation Against US Dollar

The Pakistani rupee saw a minor increase against the US dollar, climbing by 0.06% during the start of trading in the inter-bank market on Friday.

At approximately 9:53 am, the domestic currency was trading at 280.45, a gain of approximately Re0.17 compared to the previous day’s closing value.

On the preceding Thursday, the rupee concluded trading at 280.62 against the US dollar.

Global Market Influences

On the international stage, the US dollar strengthened on Thursday after its recent downturn against other currencies appeared to have temporarily ceased. The euro experienced a slight dip following the European Central Bank’s decision to reduce rates for the seventh time this year.

The US dollar has generally stabilized this week, maintaining a narrow range against the euro, following significant declines the previous week. These declines were driven by concerns regarding the economic repercussions of tariffs and investors shifting investments overseas.

Eric Theoret, a FX strategist at Scotiabank, commented, “We’ve seen a significant period of strength for most of the G10 currencies, and it appears we are currently in a phase of consolidation. Our medium-term outlook remains bearish for the US dollar, suggesting this is a temporary pause.”

Market participants are closely monitoring discussions between the US and its trading partners, seeking indications of potential agreements that could provide more clarity on the objectives of the current US administration.

Oil Price Surge

Oil prices, a vital indicator for currency values, reached a two-week high on Thursday after the US implemented new sanctions aimed at limiting Iranian oil exports, heightening concerns about supply.

Brent crude futures increased by $1.74, or 2.64%, reaching $67.59 a barrel by 11:30 a.m. EDT (1530 GMT). US West Texas Intermediate crude traded at $64.27 a barrel, up $1.80, or 2.88%. Both benchmarks had risen 2% on Wednesday to their highest levels since April 3 and are on track for their first weekly rise in three weeks. Thursday marked the last settlement day of the week before the Easter holidays, leading to anticipated lower trading volumes.

The sanctions, imposed by the US administration on Wednesday, targeted entities including a China-based oil refinery, intensifying pressure on Tehran amid ongoing discussions regarding its nuclear program.