Pakistani Rupee Declines Against US Dollar

The Pakistani rupee experienced a further decrease against the US dollar, with a depreciation of 0.02% noted in the initial hours of trading within the inter-bank market on Monday.

As of 10:15 am, the currency was recorded at 284.52, reflecting a loss of Re0.06.

During the preceding week, the rupee’s value diminished against the US dollar in the inter-bank market, incurring a loss of Re0.49, equivalent to 0.17%.

The local currency concluded the week at 284.46, a decrease from the previous week’s closing figure of 283.97 against the US dollar, according to data from the State Bank of Pakistan (SBP).

Global Currency Market Overview

Globally, the euro experienced a drop to a three-week low early on Monday. The Mexican peso also faced downward pressure after US President Donald Trump suggested implementing a 30% tariff on imports from two of the US’s major trading partners, effective August 1.

Trump’s tariff announcement was conveyed in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, shared on his Truth Social media platform on Saturday.

Both the European Union and Mexico have voiced their concerns, labeling the tariffs as unjust and potentially destabilizing. The EU also stated its intention to prolong the suspension of countermeasures against US tariffs until early August while continuing to seek a negotiated resolution.

The currency market’s response to Trump’s recent tariff threats was generally subdued during Asian trading hours, although the euro did slightly decline to a roughly three-week low during the session.

The euro later recovered some of its losses and was last trading 0.12% lower, at $1.1679.

The US dollar appreciated by 0.25% against the Mexican peso, reaching 18.6699.

In other markets, the US dollar’s gains were limited. Sterling decreased by 0.07% to $1.3481, while the Japanese yen strengthened by 0.1% to 147.28 per dollar.

Investors have shown increasing resilience to Trump’s repeated tariff threats, with his latest actions in the global trade arena having minimal impact on US stocks, which have continued to reach record highs, and only a slight boost to the US dollar.

Oil Price Trends

Oil prices, a significant indicator of currency values, saw a slight increase on Monday, building on gains of over 2% from Friday. This was driven by investor anticipation of further US sanctions on Russia, potentially affecting global supplies. However, increased Saudi output and ongoing tariff uncertainties have limited further gains.

Brent crude futures increased by 15 cents to $70.51 a barrel by 0400 GMT, following a 2.51% increase on Friday. US West Texas Intermediate crude futures rose to $68.59, up 14 cents, after a 2.82% gain in the previous session.

This information reflects an intra-day update.