Pakistani Rupee Strengthens Slightly Against US Dollar

During the initial trading hours on Tuesday, the Pakistani rupee demonstrated a marginal recovery against the US dollar, gaining 0.02% in the inter-bank market.

At approximately 10:00 AM, the rupee’s value stood at 281.90, reflecting an increase of Re0.07 relative to the US currency.

The rupee had concluded the previous trading day, Monday, at a value of 281.97.

Global Market Influences

The US dollar declined to a six-week nadir internationally on Tuesday, influenced by indications of economic instability in the United States, potentially stemming from the impact of trade disputes initiated by the previous administration.

While global stock markets have generally rebounded following the fluctuating tariff impositions, the dollar has remained weak. Upcoming data concerning manufacturing and employment in the US may further elucidate the detrimental effects of trade uncertainties on the world’s largest economy.

The duties imposed by the US on imported steel and aluminum are scheduled to escalate to 50% on Wednesday, coinciding with the deadline for countries to submit their final proposals in ongoing trade discussions.

The dollar index, which assesses the value of the US currency against six major international currencies, reached a low of 98.58, a level unseen since late April, before experiencing a rebound of 0.3%. The dollar also increased by 0.3% against the yen, reaching 143.21 yen.

The dollar index decreased by 0.8% on Monday after newly released data indicated a third consecutive month of contraction in US manufacturing during May, along with supply chain disruptions attributed to tariff-related issues. Market focus will now shift to US factory orders due on Tuesday, in addition to upcoming employment statistics later in the week.

The US dollar experienced a slight recovery last week, increasing by 0.3% following the resumption of trade negotiations with the European Union. However, an appeals court reinstated the duties a day later.

Oil Prices Rise Amid Supply Concerns

Oil prices saw an increase on Tuesday due to concerns regarding supply. Iran’s expected rejection of a US nuclear agreement proposal, which is crucial for easing sanctions on the major oil producer, contributed to the price increase. The weaker dollar also offered some support.

Brent crude futures rose by 21 cents, or 0.32%, to reach $64.84 per barrel by 0437 GMT. US West Texas Intermediate crude increased by 27 cents, or 0.43%, reaching $62.79 per barrel, after an earlier increase of approximately 1% during the session.

This information reflects an intra-day market update.