Rupee’s Stability Against the US Dollar

On Thursday, the Pakistani rupee exhibited relative stability in the inter-bank market against the US dollar.

The currency concluded trading at 284.97, reflecting a minor decrease of Re0.01. In comparison, the rupee’s closing value on Wednesday was 284.96.

Global Context: US Dollar’s Position

The US dollar’s international standing was somewhat precarious on Thursday, experiencing overnight declines following anxieties about potential actions by US President Donald Trump concerning the Federal Reserve chair.

While Trump dismissed claims of intending to remove Fed Chair Jerome Powell, he did not rule out the possibility and reiterated his disapproval of the central bank’s interest rate policies.

Investors are concerned that prematurely dismissing Powell, whose term extends until May 2026, could erode confidence in the US financial infrastructure and the dollar’s dependability as a safe currency.

Trump has consistently criticized Powell for not implementing rate reductions, advocating for rates at or below 1%.

Currency Index and Performance

The US dollar index, which evaluates the dollar against major global currencies, showed minimal change at 98.384, following a 0.3% decrease on Wednesday.

The US currency saw a 0.2% rise to 148.14 yen, recovering from a 0.6% drop overnight.

The euro was valued at $1.1632, a slight decrease of 0.01%. Sterling declined by 0.1% to $1.3409. Market participants are keenly observing tariff developments leading up to the August 1 deadline, which could bring higher trade levies for numerous trading partners.

Oil Price Movements

Oil prices experienced gains in early trading on Thursday, reversing losses from the prior session. This upswing was fueled by positive economic data from major oil-consuming nations and indications of reduced trade tensions.

Brent crude futures increased by 27 cents, or 0.39%, reaching $68.79 a barrel at 0000 GMT.

US West Texas Intermediate crude futures rose by 31 cents, or 0.47%, to $66.69.