Pakistani Rupee Gains Slightly Against US Dollar

The Pakistani rupee experienced a marginal increase against the US dollar, appreciating by 0.01% in early trading on Tuesday in the inter-bank market.

As of 11 am, the rupee was valued at 281.53, reflecting a gain of Re0.04 against the dollar.

The rupee’s previous closing value on Monday was 281.57.

Global Market Influences

On the global stage, the US dollar maintained its strength on Tuesday, buoyed by investor optimism regarding a tariff agreement between the US and China. This agreement aims to de-escalate trade tensions between the world’s two largest economies, which had previously stoked fears of a global economic downturn.

The US and China declared on Monday their accord to reduce the substantial tariffs imposed on each other for a period of 90 days, leading to a market rally that positively impacted global stocks and strengthened the US dollar.

The US dollar index, which measures the dollar against a basket of currencies, remained close to a one-month peak at 101.67.

The easing of trade tensions between the US and China has prompted traders to adjust their expectations regarding potential interest rate cuts by the Federal Reserve, anticipating less pressure on policymakers to implement accommodative monetary policies to bolster economic growth.

Correspondingly, US Treasury yields increased, with the two-year yield stabilizing near a one-month high at 3.9977%, while the 10-year yield reached 4.4551%.

Oil Prices Dip Amid Supply Concerns

Oil prices, a crucial indicator of currency values, declined slightly on Tuesday after reaching a two-week high. This downturn was attributed to concerns about increasing supplies, despite initial optimism following the US-China trade truce involving temporary tariff reductions.

Brent crude futures decreased by 22 cents, or 0.3%, to $64.74 a barrel by 0248 GMT. U.S. West Texas Intermediate (WTI) crude also fell by 18 cents, or 0.3%, to $61.77.

Both benchmarks had closed approximately 1.5% higher on Monday, marking their highest settlements since April 28. These gains occurred during a volatile period for global oil markets.

The US and China’s agreement to lower tariffs for at least 90 days had initially propelled Wall Street stocks, the US dollar, and crude prices upward on Monday.

This information constitutes an intra-day market update.