Pakistani Rupee’s Slight Dip Against US Dollar

During Wednesday’s initial trading hours, the Pakistani rupee experienced a minor decrease against the US dollar, registering a 0.01% depreciation in the interbank market.

By noon, the rupee’s value stood at 283.78, reflecting a loss of Re0.02. The currency had previously closed at 283.76 on Monday. The interbank market remained closed on Tuesday due to a bank holiday.

Globally, the US dollar remained near its lowest level since February 2022 against major currencies. Investors weighed Federal Reserve Chair Jerome Powell’s dovish signals and the potential consequences of President Donald Trump’s spending legislation.

The dollar was also trading close to its weakest point since September 2021 against the euro and its lowest since January 2015 versus the Swiss franc.

Powell, speaking at the European Central Bank’s conference in Sintra, Portugal, reiterated the Federal Reserve’s cautious approach to further interest rate reductions. However, he did not dismiss the possibility of a cut at this month’s meeting, emphasizing the importance of upcoming economic data.

This puts greater significance on the upcoming monthly non-farm payrolls report scheduled for Thursday. Positive US JOLTS figures overnight had previously helped the dollar recover from Tuesday’s lows.

The US dollar index, which tracks the dollar’s performance against six major currencies, slightly increased to 96.677 but remained close to its overnight low of 96.373.

Markets are also closely monitoring Trump’s substantial tax and spending proposal, which could potentially add $3.3 trillion to the national debt. The bill, having cleared the US Senate, is now awaiting final approval in the House.

Oil prices, a crucial indicator for currency values, showed minimal change on Wednesday. The market is evaluating the potential for increased supply from major producers in the coming month, a weaker US dollar, and mixed economic signals from the US, the world’s largest oil consumer.

Brent crude experienced a 2-cent rise, reaching $67.13 a barrel at 0345 GMT, while US West Texas Intermediate crude saw a 1-cent decrease, settling at $65.44 a barrel. Since June 25, Brent has fluctuated between $66.34 and $69.05 per barrel, as concerns about supply disruptions in the Middle East have eased following the ceasefire between Iran and Israel.

This information reflects an intra-day market update.