Rupee Gains Marginally Against US Dollar in Early Trading

The Pakistani rupee saw a slight improvement against the US dollar, increasing by 0.08% in the initial trading hours in the inter-bank market today.

At approximately 10:00 AM, the rupee’s value stood at 284.73, reflecting a gain of approximately Re0.24.

Yesterday, the rupee concluded trading at 284.97.

Global Market Trends

On the international front, the US dollar is on track for its second consecutive weekly gain against major currencies. This upward trend is supported by positive US economic data, reinforcing expectations that the Federal Reserve can maintain its current stance before considering further interest rate reductions.

The yen remains weak as Japan approaches upper house elections on Sunday. Projections suggest the ruling coalition might lose its majority, potentially causing policy instability and complicating trade negotiations with the United States.

Bitcoin is currently trading just under $120,000, following a recent surge to an all-time high of $123,153.22 earlier this week. This surge coincided with Congress’s passage of legislation to establish a framework for dollar-pegged stablecoins.

The dollar index, which compares the dollar to six major currencies, remained stable at 98.456 as of 0038 GMT. It is poised for a 0.64% weekly increase, building on the previous week’s 0.91% rise.

The dollar index reached a peak of 98.951 on Thursday, marking its highest point since June 23. This surge followed the release of US data indicating a stronger-than-expected rebound in retail sales in June, coupled with a drop in initial jobless claims to a three-month low last week.

Earlier this week, a report revealed that consumer prices increased at the fastest pace in five months during June, suggesting tariffs are starting to impact inflation.

Traders are currently anticipating around 45 basis points of rate cuts for the remainder of the year, down from nearly 50 basis points at the start of the week.

Despite recent gains, the dollar index remains 9.3% lower year-to-date, following a significant selloff in March and April. This decline occurred after President Donald Trump’s unpredictable trade policies weakened confidence in US assets, causing declines in the currency, Treasury bonds, and Wall Street.

Oil Prices

Oil prices experienced minimal movement today, following gains in the previous session. Concerns regarding drone attacks on northern Iraqi oil fields, which could disrupt supply, were counteracted by worries about potential demand declines amid uncertainty in U.S. tariff policy.

Brent crude futures fell by 4 cents, or 0.06%, to $69.48 a barrel as of 0239 GMT. US West Texas Intermediate crude futures decreased by 3 cents, or 0.04%, to $67.51 a barrel.

This update reflects intraday trading activity.