Rupee Rises Slightly Against US Dollar in Inter-Bank Trading

The Pakistani rupee continued its positive movement against the US dollar, increasing by 0.03% in Tuesday’s inter-bank market activity.

At the session’s end, the rupee’s value was recorded at 282.57, reflecting an appreciation of Re0.09. This follows Monday’s closing value of 282.66.

The US dollar experienced instability on the global market on Tuesday. Expectations of potential rate reductions by the Federal Reserve influenced market sentiment, alongside evaluations of the broader economic consequences of US tariffs implemented the previous week.

The dollar faced ongoing downward pressure following the US jobs report released on Friday, which indicated vulnerabilities in the labor sector. This prompted traders to rapidly anticipate interest rate decreases in the near future.

Market uncertainty was further amplified by US President Donald Trump’s dismissal of a senior statistics official and the resignation of Federal Reserve Governor Adriana Kugler, contributing to a notable decline in the dollar’s value on Friday.

After regaining some stability on Monday, the US currency showed weakness in early trading on Tuesday. The euro was last priced at $1.1579, while the pound sterling was valued at $1.3298.

The dollar index, which tracks the US currency against six major currencies, registered at 98.688, after hitting a one-week low earlier in the trading day.

Currently, market participants are factoring in a 94.4% likelihood of the Federal Reserve lowering rates at its next meeting in September, a significant increase from 63% just a week prior, according to the CME FedWatch tool.

Oil prices, an important metric for assessing currency parity, remained relatively stable on Tuesday after a three-day decline. Concerns about increasing oversupply, resulting from OPEC+’s agreement to a further substantial output increase in September, were balanced by the potential for additional disruptions in Russian supply, which provided support to the market.

Brent crude futures were steady at $68.76 per barrel as of 0036 GMT, while US West Texas Intermediate crude decreased by 2 cents, or 0.03%, to $66.27 per barrel.

Both contracts experienced declines exceeding 1% in the previous session, reaching their lowest levels in a week.