Rupee Strengthens Against US Dollar in Early Trading

The Pakistani rupee demonstrated a positive trend against the US dollar, experiencing a 0.26% surge during the initial trading hours in the inter-bank market on Thursday.

At approximately 10:00 AM, the rupee’s value had risen to 284.03, reflecting a gain of Re0.73.

The previous day, Wednesday, the rupee had closed at 284.76.

Law enforcement agencies in Pakistan have reportedly commenced operations targeting individuals involved in illicit foreign currency activities. This initiative is aimed at curbing the unlawful transfer of currencies, notably US dollars, to neighboring nations such as Afghanistan and Iran.

According to Malik Muhammad Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP), these operations contributed to the rupee’s appreciation against the US dollar on Wednesday.

Global Market Overview

In international markets, the euro approached its highest valuation in almost four years on Thursday. The yen also maintained its gains, bolstered by advancements in trade agreements between the United States and its primary trading partners, fostering a more optimistic market sentiment.

Currency markets largely disregarded the news of US President Donald Trump’s planned visit to the Federal Reserve, despite his past criticism of Federal Reserve Chair Jerome Powell.

The potential meeting between Trump and Powell, who has been repeatedly criticized for not implementing more aggressive US interest rate cuts, remains uncertain.

The markets are closely monitoring ongoing tariff negotiations. Two European diplomats indicated on Wednesday that the European Union and the US are progressing towards a trade accord. This agreement could encompass a 15% US baseline tariff on EU goods, along with potential exemptions.

This development follows Washington’s recent trade agreement with Tokyo, which involves reduced tariffs on auto imports and shields Japan from new levies on other goods, in return for a $550 billion commitment in US-bound investment and loans.

Global markets have reacted favorably to these recent developments, with risk assets increasing in value and investors selling off the US dollar.

The dollar index saw a slight decrease to 97.15.

Oil Prices Rise Amid Trade Optimism

Oil prices, which serve as a vital indicator of currency parity, increased on Thursday. This rise was fueled by optimism surrounding US trade negotiations, which are expected to alleviate pressure on the global economy, and a more pronounced-than-anticipated reduction in US crude inventories.

Brent crude futures saw an increase of 24 cents, or 0.4%, reaching $68.75 a barrel by 0032 GMT. US West Texas Intermediate crude futures also climbed by 25 cents, or 0.4%, to $65.50 per barrel.

Both benchmarks remained relatively stable on Wednesday as markets kept a close watch on developments in US-European Union trade discussions, subsequent to President Donald Trump’s tariff agreement with Japan.

This information reflects an intra-day update.