Pakistani Rupee Sees Slight Gain Against US Dollar

The Pakistani rupee showed a marginal improvement against the US dollar, increasing by 0.04% during Tuesday’s interbank trading session.

At the market’s close, the local currency was valued at 283.77, reflecting an increase of approximately Re0.1 against the US currency.

The rupee’s value on the previous day, Monday, was 283.87.

In global markets, the US dollar weakened on Tuesday, while the Australian and New Zealand dollars strengthened. This followed an announcement from former US President Donald Trump regarding a ceasefire between Israel and Iran, a development that boosted investor confidence and spurred a market rally.

Trump declared a complete cessation of hostilities between Israel and Iran, which potentially concludes the 12-day conflict. This conflict had displaced millions from Tehran and heightened concerns about further escalation in the volatile region.

As of now, there has been no official statement from Israel. Earlier, an Iranian official confirmed Tehran’s agreement to a ceasefire. However, Iran’s foreign minister stated that a cessation of hostilities would only occur if Israel halted its attacks.

The Australian dollar, sensitive to risk, experienced a rise and was last trading 0.3% higher at $0.6480, while the New Zealand dollar also climbed 0.3% to $0.5994. The Israeli shekel saw a significant increase, rising 1% against the dollar to reach its highest valuation since February 2023.

The dollar, which had recently benefited from safe-haven demand, experienced a broad decline following the ceasefire announcement.

Against the Japanese yen, the US currency decreased by 0.37% to 145.60.

The euro rose by 0.12% to $1.1592, and the British pound increased by 0.11% to $1.3541.

Trump’s remarks on his Truth Social platform followed a missile strike by Iran on a US airbase in Qatar on Monday, which resulted in no casualties. He characterized this action as a “weak response” to prior US military actions.

When measured against a basket of currencies, the dollar remained relatively stable at 98.23, having previously fallen by over 0.5% in the prior trading session.

Oil prices, an important indicator of currency stability, reached a two-week low on Tuesday following Israel’s acceptance of a ceasefire proposal from former US President Donald Trump regarding Iran. This eased concerns regarding potential supply disruptions in the Middle East, a major oil-producing region.

Brent crude futures fell by $3.82, or 5.3%, to $67.66 per barrel at 0645 GMT. US West Texas Intermediate crude experienced a decrease of $3.75, or 5.5%, to $64.76 per barrel.

Israeli Prime Minister Benjamin Netanyahu stated that Israel has agreed to Trump’s ceasefire proposal with Iran, having achieved its objective of neutralizing Tehran’s nuclear and ballistic missile threat. This statement was issued by his office on Tuesday.