Pakistani Rupee Strengthens Slightly Against US Dollar

The Pakistani rupee continued its positive momentum against the US dollar, experiencing a slight increase of 0.02% during Monday’s inter-bank trading session.

At the session’s close, the rupee’s value reached 282.66, reflecting an appreciation of Re0.06.

Over the course of the previous week, the rupee further solidified its position against the US dollar in the inter-bank market, gaining Re0.73, which translates to a 0.26% increase.

According to data from the State Bank of Pakistan (SBP), the local currency concluded the week at 282.72, a notable rise from the previous week’s closing rate of 283.45 against the dollar.

In global markets, the US dollar, recently weakened, saw a marginal recovery on Monday. This followed a disappointing US jobs report and the dismissal of a key labor official by President Donald Trump, actions that surprised investors and heightened expectations for imminent interest rate cuts by the Federal Reserve.

Friday’s figures revealed that US job creation in July fell short of anticipated levels. Moreover, the nonfarm payrolls for the preceding two months were significantly revised downward by 258,000 jobs, suggesting a considerable downturn in the labor market.

Adding to the market’s uncertainty, President Trump terminated the Bureau of Labor Statistics Commissioner Erika McEntarfer on the same day, accusing her of manipulating job statistics.

The unexpected resignation of Fed Governor Adriana Kugler also presented an opportunity for President Trump to influence the central bank’s direction sooner than expected. Trump has previously expressed disagreement with the Fed’s pace in lowering interest rates.

These events delivered a double blow to the dollar, causing it to plummet by over 2% against the yen and approximately 1.5% against the euro on Friday.

The dollar managed to recoup some losses against the Japanese yen on Monday, trading 0.14% higher at 147.60 yen.

The euro decreased by 0.2% to $1.1560, while the sterling also edged down by 0.1% to $1.3263.

The dollar index, which measures the dollar’s value against a basket of currencies, rose by 0.2% to 98.86, after experiencing a decline of over 1% on Friday.

Oil prices, a crucial indicator for currency values, continued to decline on Monday after OPEC+ agreed to another substantial production increase in September. Concerns regarding a slowing economy in the US, the world’s largest oil consumer, further contributed to the downward pressure.

Brent crude futures decreased by 40 cents, or 0.57%, to $69.27 a barrel by 0115 GMT, while US West Texas Intermediate crude traded at $66.96 a barrel, down 37 cents, or 0.55%, following both contracts closing approximately $2 lower on Friday.