Pakistani Rupee Strengthens Against US Dollar in Early Trading

The Pakistani rupee demonstrated a slight recovery against the US dollar, appreciating by 0.03% during the initial trading hours in the inter-bank market this Wednesday.

As of 10:20 am, the rupee was trading around 284.28, marking an increase of approximately Re0.08.

The currency had closed at 284.36 the previous day, Tuesday.

Global Market Influences

On the international front, the US dollar experienced a rise against the yen for the third consecutive day. This movement occurred following announcements from US President Donald Trump regarding potential trade measures after imposing 25% tariffs on Japan and other trade partners.

The US dollar gained ground against major currencies on Tuesday after initial indications from Trump of significantly higher US tariffs starting August 1. However, he later suggested he might consider extensions if countries proposed alternative solutions.

Trump communicated via social media that announcements were expected this Wednesday concerning trade with “a minimum of 7 countries,” without elaborating on whether these would involve new agreements or tariff notifications.

Previous negotiation rounds between the US and Japan have not yielded breakthroughs, leading Japanese policymakers to focus on an upcoming crucial upper house election this month.

The US dollar increased by 0.2% to reach 146.85 yen, having touched a high point not seen in over two weeks the day before. The euro remained relatively stable at $1.1720.

The US dollar index, which measures the dollar’s strength against six major currencies, held steady at 97.582 following a two-day upward trend. Sterling traded at $1.35795, showing a 0.1% decrease in early trading sessions.

Impact on Oil Prices

Oil prices, which are important for assessing currency parity, experienced a slight decrease on Wednesday. This followed a rise to two-week highs in the prior session, as investors closely monitor new developments regarding US tariffs and their possible effects.

Brent crude futures decreased by 20 cents, equivalent to 0.3%, trading at $69.95 per barrel as of 0121 GMT. Similarly, U.S. West Texas Intermediate crude declined by 21 cents, or 0.4%, reaching $68.12 per barrel.

This information reflects an update during the trading day.