Pakistani Rupee’s Slight Dip Against US Dollar

On Monday, the Pakistani rupee experienced a minor decrease against the US dollar, falling by 0.02% in the interbank market.

At the market’s close, the rupee was recorded at 283.76, reflecting a loss of Re0.04 compared to the US dollar.

Throughout the past week, the rupee had demonstrated considerable stability relative to the US dollar.

According to the State Bank of Pakistan (SBP), the domestic currency concluded at 283.72, showing a slight reduction of Rs0.02, equivalent to 0.01%, from the previous week’s closing rate of 283.70 against the dollar.

Global Currency Market Overview

Globally, the US dollar remained near its lowest point in almost four years against the euro on Monday. Market optimism surrounding US trade agreements has increased expectations for earlier interest rate cuts by the Federal Reserve.

The dollar also hovered near a four-year low against the British pound and a more than ten-year low against the Swiss franc. This followed progress between Washington and China toward a tariff agreement, even as US President Donald Trump introduced some market uncertainty by halting trade discussions with Ottawa.

Investors viewed Federal Reserve Chair Jerome Powell’s recent testimony to the U.S. Congress as leaning towards a more relaxed monetary policy. Powell indicated that rate cuts would likely be implemented if inflation does not surge this summer due to tariffs.

Based on the CME Group’s FedWatch Tool, expectations for at least a quarter-point rate reduction by September have risen to 92.4%, up from approximately 70% the previous week.

The US dollar index, which assesses the dollar’s strength against six major currencies including the euro, pound, and franc, increased by 0.1% to 97.276. However, it remained close to the more than three-year low of 96.933 recorded late last week.

Impact of Oil Prices

Oil prices, a significant indicator of currency valuation, decreased by 1% on Monday. This decline was influenced by a reduction in geopolitical tensions in the Middle East and the potential for another OPEC+ output increase in August, boosting supply forecasts.

Brent crude futures decreased by 66 cents, or 0.97%, to $67.11 a barrel by 0031 GMT, ahead of the August contract’s expiry later on Monday.

The more active September contract was priced at $65.97, down 83 cents.

US West Texas Intermediate crude experienced a drop of 94 cents, or 1.43%, to $64.58 a barrel.

Last week, both benchmarks recorded their most significant weekly decline since March 2023. Nevertheless, they are on track to conclude June with a second consecutive monthly increase of over 5%.

This information is an intra-day update.