Pakistani Rupee Declines Slightly Against US Dollar

The Pakistani rupee experienced a marginal decrease against the US dollar, sliding by 0.04% in the interbank market on Tuesday.

At the session’s conclusion, the local currency was recorded at 281.67, reflecting a loss of Re0.1 versus the dollar.

The rupee had previously ended trading on Monday at 281.57.

Global Market Influences

Globally, the US dollar maintained its strength on Tuesday. Investors responded positively to a tariff agreement between the US and China, which aims to de-escalate trade tensions between the world’s leading economies, thereby reducing fears of a global economic downturn.

On Monday, both Washington and Beijing revealed a plan to lower the significant tariffs imposed on each other for a period of 90 days. This announcement triggered a wave of positive sentiment across markets, boosting global stock values and causing a rise in the dollar’s value.

The US dollar index, which measures the dollar against a selection of other currencies, remained close to its highest point in a month, registering at 101.67.

The easing of trade tensions between the US and China has also led traders to reassess their expectations regarding potential interest rate cuts by the Federal Reserve. The prevailing sentiment suggests that policymakers may feel less compelled to implement accommodative monetary policies to stimulate economic growth.

Correspondingly, US Treasury yields increased. The two-year yield stabilized near its one-month peak at 3.9977%, while the 10-year yield reached 4.4551%.

Oil Price Update

Oil prices saw a slight increase on Tuesday; however, gains were limited due to growing supplies and uncertainty about whether the US-China trade truce would result in a more enduring agreement.

Brent crude futures increased by 21 cents, or 0.3%, to reach $65.18 a barrel as of 0919 GMT.

US West Texas Intermediate (WTI) crude rose by 30 cents, approximately 0.5%, to $62.25.

Both benchmarks experienced gains of around 4% or more during the previous trading session following the US and China’s agreement to significantly reduce tariffs for a minimum of 90 days, which also provided support to Wall Street stocks and the dollar.