Pakistani Rupee Gains Marginally Against US Dollar

The Pakistani rupee experienced a slight increase against the US dollar, rising by 0.03% in the inter-bank market on Friday.

At the session’s end, the local currency closed at 280.97 against the US dollar, a minor decrease of Re0.10 compared to the previous day’s closing value.

On the preceding Thursday, the rupee had decreased by 0.04%, reaching a 15-month low of 281.07 in the inter-bank market.

Globally, the US dollar edged upward on Friday, recovering from slight declines the previous day, as traders assessed the outlook for the U.S. economy amidst fluctuating communications from President Donald Trump regarding trade agreements and Federal Reserve involvement.

The U.S. currency has seen considerable fluctuation throughout the week. It began with a 1% drop against major currencies on Monday after Trump suggested he might dismiss Fed Chair Jerome Powell for insufficient interest rate cuts. However, it then surged 1.5% a day later when Trump stated he had no intention of replacing Powell and hinted at easing trade tensions with China.

Nevertheless, the absence of tangible progress toward initiating discussions with Beijing led to a subsequent weakening of the dollar later in the week. Overall, the dollar index, which compares the currency to six major counterparts, is on track for a modest 0.27% increase for the week, potentially ending a four-week period of losses.

Investors remain uncertain about the current state of affairs with China. Beijing claimed on Thursday that no trade talks had occurred with Washington, despite Trump’s later reiteration that direct negotiations were underway.

Oil prices, a crucial indicator for currency values, rose for a second consecutive session on Friday, supported by the possibility of reduced tensions in the US-China trade situation. However, the market was headed for a weekly decline of around 2% due to concerns about excess supply.

Brent crude futures increased by 31 cents to $66.85 a barrel by 0650 GMT, marking a 1.7% decrease for the week so far.

US West Texas Intermediate (WTI) crude increased by 35 cents to $63.12 a barrel, showing a 2.4% decrease for the week.

According to LSEG senior analyst Anh Pham, “Oil prices are slightly elevated today as the market is reacting positively to indications of reduced tensions related to Trump’s tariffs and a possible change in the Fed’s policy stance, contributing to a broader market recovery.”