Pakistani Rupee Gains Marginally Against US Dollar

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

As of 9:53 am, the rupee’s value stood at 280.45, a rise of approximately Re0.17 compared to the previous day’s closing figure.

On the preceding day, Thursday, the rupee concluded trading at 280.62 versus the US currency.

Global Currency Market Overview

Across the globe, the US dollar experienced a surge on Thursday, rebounding from recent declines against other currencies. Meanwhile, the euro saw a minor dip following the European Central Bank’s decision to lower rates for the seventh time within a year.

This week, the dollar has largely stabilized, maintaining a narrow range against the euro after significant drops last week. These earlier declines were driven by worries regarding the economic effects of tariffs and investors shifting their assets to foreign markets.

According to Eric Theoret, a FX strategist at Scotiabank, the recent strength of most G10 currencies suggests a temporary pause. He added that despite this consolidation, their medium-term outlook for the US dollar remains bearish.

Market participants are keenly observing discussions between the United States and its trade partners, seeking indications of potential agreements that might clarify the objectives of the current US administration.

Oil Prices Surge Amid Sanctions

Oil prices, a crucial indicator for currency valuation, reached a two-week high on Thursday. This increase followed the United States imposing new sanctions aimed at restricting Iranian oil exports, which intensified concerns about supply.

Brent crude futures increased by $1.74, or 2.64%, to reach $67.59 a barrel by 11:30 a.m. EDT (1530 GMT). Similarly, US West Texas Intermediate crude rose by $1.80, or 2.88%, to $64.27 a barrel. Both benchmarks had already settled 2% higher on Wednesday, marking their highest levels since April 3, and are on course for their first weekly gain in three weeks. Thursday marks the final settlement day of the week prior to the Easter holidays, with trade volumes anticipated to be lower.

The sanctions, implemented by the US administration on Wednesday, including those targeting a China-based “teapot” oil refinery, are increasing pressure on Iran amidst ongoing discussions about its nuclear program.