Pakistani Rupee Edges Higher Against US Dollar

The Pakistani rupee experienced a slight increase against the US dollar, gaining 0.02% in the inter-bank market on Friday.

At the market’s close, the local currency concluded at 282.02, reflecting an appreciation of Re0.05 against the US dollar.

On the preceding day, Thursday, the Pakistani rupee had closed at 282.07.

Global Market Influences

The US dollar weakened on Friday on the international market, on track for its fifth consecutive monthly decline. Market participants were preparing for continued volatility related to trade and fiscal conditions, while closely monitoring a key inflation report due later in the day.

The US dollar faced a turbulent week, finishing lower in the previous session after a federal court temporarily reinstated the most extensive of President Donald Trump’s tariffs. This followed a separate trade court’s order to immediately block said tariffs.

Trump voiced his disapproval of the trade court’s ruling on Thursday, expressing his hope that the Supreme Court would reverse the decision.

The uncertainty regarding tariffs has significantly impacted markets, as investors seek alternatives to US assets. Concerns over Trump’s unpredictable policies potentially undermining the strength and superior performance of US markets have fueled this shift.

On Friday, the euro saw a marginal strengthening to $1.1378, while the Swiss franc also gained ground, reaching 0.8216 per dollar.

The US currency was poised for monthly losses against the Swiss franc, the euro, and the pound.

The dollar index, which measures the US dollar’s performance against a basket of six other currencies, remained stable. The index was on course to decline by 0.4% in May, marking its fifth consecutive month of losses.

Oil Prices Decline Amid Tariff Uncertainty

Oil prices, a significant indicator of currency parity, were set to conclude the week with a decrease of over 1% on Friday. This decline occurred amid fluctuating tariff decisions in the US and as the market anticipated a possible increase in OPEC+ output.

Brent crude futures decreased by 26 cents, or 0.41%, to settle at $63.89 a barrel as of 0104 GMT. US West Texas Intermediate crude dropped by 27 cents, or 0.44%, to $60.67 a barrel.

The Brent July futures contract was scheduled to expire on Friday.