Pakistani Rupee Shows Slight Improvement Against US Dollar

The Pakistani rupee experienced a marginal increase against the US dollar, gaining 0.03% in the interbank market on Friday.

At the market’s close, the local currency was valued at 280.97 against the dollar, reflecting a slight decrease of Re0.10 compared to the previous day’s closing rate.

On the preceding Thursday, the rupee had declined by 0.04%, reaching a 15-month low of 281.07 in the interbank market.

Global Market Influences

Globally, the US dollar saw a slight rise on Friday, recovering from minor losses earlier, as investors analyzed the US economic outlook amid inconsistent communications from President Donald Trump regarding trade agreements and Federal Reserve matters.

The US dollar’s value has fluctuated significantly this week. It initially fell by 1% against major currencies after Trump suggested dismissing Fed Chair Jerome Powell for insufficient interest rate cuts. However, it then surged by 1.5% the next day when Trump denied plans to replace Powell and hinted at easing trade tensions with China.

However, the dollar weakened later in the week due to the absence of tangible progress in initiating discussions with Beijing. Overall, the dollar index, which measures the currency’s value against six major currencies, is set for a modest 0.27% increase for the week, potentially ending a four-week losing streak.

Investors are particularly uncertain about the current state of affairs with China. Despite Trump’s reiteration of ongoing direct negotiations, Beijing stated on Thursday that no trade talks had taken place with Washington.

Impact of Oil Prices

Oil prices, an essential determinant of currency parity, increased for a second consecutive session on Friday, supported by potential de-escalation of trade tensions between the US and China. However, the market is anticipated to decline by about 2% for the week due to concerns about oversupply.

Brent crude futures increased by 31 cents to $66.85 a barrel by 0650 GMT, showing a 1.7% decrease for the week.

US West Texas Intermediate (WTI) crude rose by 35 cents to $63.12 a barrel, having fallen 2.4% for the week.

Analyst Commentary

According to LSEG senior analyst Anh Pham, oil prices experienced a slight increase as the market reacted positively to indications of reduced tensions surrounding Trump’s tariffs and a potential shift in the Fed’s policy stance, contributing to a wider market recovery.

Inter-bank market rates for dollar on Friday

  • BID Rs 280.97
  • OFFER Rs 281.17
Open Market Performance

In the open market, the PKR declined by 1 paisa for buying and 14 paise for selling against the USD, concluding at 280.89 and 282.72, respectively.

Against the Euro, the PKR appreciated by 1.10 rupee for buying and 99 paise for selling, settling at 317.60 and 320.85, respectively.

Against the UAE Dirham, the PKR rose by 1 paisa for both buying and selling, closing at 76.37 and 77.10, respectively.

Against the Saudi Riyal, the PKR decreased by 3 paise for buying and 4 paise for selling, ending at 75.04 and 75.76, respectively.

Open-market rates for dollar on Friday

  • BID Rs 280.89
  • OFFER Rs 282.72