Pakistani Rupee Shows Stability Against US Dollar

On Monday, the Pakistani rupee demonstrated relative stability in the inter-bank market, experiencing a slight increase of 0.01% against the US dollar.

As of 10:15 am, the local currency was trading around 281.95, reflecting a marginal gain of Re0.02 relative to the US dollar.

During the preceding week, the rupee had weakened against the US dollar, diminishing by Re0.31, equivalent to 0.11%, within the inter-bank market.

According to the State Bank of Pakistan (SBP), the local currency concluded the previous week at 281.97, contrasting with the closing figure of 281.66 from the week before.

Global Market Trends

On the international stage, both the euro and the US dollar saw gains against the yen and the Swiss franc. This occurred after President Donald Trump established a deadline of July 9 for a trade agreement with the European Union, thereby retracting his earlier threat of imposing a 50% tariff from June 1.

President Trump communicated this decision to reporters on Sunday, following a conversation with European Commission President Ursula von der Leyen, who had requested additional time to finalize an agreement. The July 9 deadline marks the conclusion of the 90-day suspension of Trump’s “Liberation Day” levies on the EU and a majority of its trade partners.

This de-escalation, emerging shortly after Trump’s initial threat, highlights the volatile nature of US trade policy. It also provided reassurance to investors regarding the potential for trade deals and mitigated concerns about a possible global economic decline.

The euro experienced a 0.3% increase, reaching 162.60 yen, and rose by 0.2% against the dollar, attaining its highest value since April 30 at $1.1382.

The US dollar exhibited a rebound of up to 0.4%, reaching 143.085 yen, after a 1% decrease on the previous Friday.

Impact on Oil Prices

Oil prices, a crucial gauge of currency parity, saw gains in early Asian trading on Monday. This uptick was influenced by President Trump’s extension of the trade talk deadline with the EU, which alleviated anxieties regarding potential US tariffs on the bloc that could negatively impact the global economy and diminish fuel demand.

Brent crude futures increased by 37 cents, or 0.6%, reaching $65.15 per barrel by 0001 GMT, while U.S. West Texas Intermediate crude rose by 34 cents, or 0.6%, to $61.87 per barrel.

These benchmarks built on gains, having already settled 0.5% higher on Friday, as limited progress in US-Iran nuclear discussions lessened worries about the reintroduction of Iranian oil into global markets. Furthermore, US buyers adjusted positions ahead of the Memorial Day weekend.

This information reflects an intra-day market update.