The Pakistani rupee maintained stability against the US dollar on Thursday, settling at 279.46, marking a slight gain of Re0.01 compared to the previous day’s closing value of 279.47. This minor fluctuation indicates the relative steadiness of the local currency despite the fluctuating global financial landscape.
Globally, currency markets were marked by cautious trading, with the US dollar holding steady while other currencies, such as the Japanese yen, saw some notable movements. The yen, for instance, strengthened to a two-month high of 150.62 per dollar, fueled by a “flight to safety” as concerns about the potential effects of US President Donald Trump’s latest tariff proposals dominated investor sentiment. The uncertainty surrounding the global economic impact of these tariffs has led to speculations regarding potential interest rate adjustments by major central banks, including the US Federal Reserve and the Bank of Japan.
Geopolitical tensions also contributed to the global market volatility. Trump’s recent comments about Ukrainian President Volodymyr Zelenskiy, calling him a “dictator” amid ongoing discussions about the Russia-Ukraine conflict, added further uncertainty to international markets, particularly within Europe.
Back in Asia, where trading was subdued, most currencies moved within modest ranges. The US dollar hovered near a one-week high of 107.15 against a basket of major currencies, indicating a more cautious tone in global currency exchanges. Meanwhile, the British pound experienced a retreat from a two-month peak, last recorded at $1.2594, as investors assessed the implications of US economic policies on the broader international economic outlook.
In the US, the minutes from the Federal Open Market Committee (FOMC) meeting revealed that President Trump’s tariff proposals raised concerns among Federal Reserve officials about the potential for accelerating inflation. These discussions have led to a more patient stance on rate cuts, supporting the US dollar’s stability in the international market.
Oil prices, which are closely tied to currency movements due to their impact on inflation and trade balances, were relatively unchanged on Thursday. Brent crude oil futures rose by 20 cents to $76.24 per barrel, while US West Texas Intermediate crude experienced a slight dip, dropping by 30 cents to $71.95 per barrel. These price movements followed an industry report indicating an increase in US crude stockpiles, which weighed on market sentiment.
In the inter-bank market, the Pakistani rupee was quoted at Rs 279.46 for bid and Rs 279.66 for offer, reflecting minimal volatility in the official exchange rate.
Turning to the open market, the Pakistani rupee experienced slight fluctuations against major foreign currencies. The rupee lost 5 paise for buying but gained 4 paise for selling against the US dollar. The dollar closed at Rs 278.79 for buying and Rs 281.08 for selling, showing moderate movement. Against the Euro, the rupee gained 21 paise for buying and 17 paise for selling, closing at Rs 290.48 for buying and Rs 293.50 for selling.
The PKR saw a slight decline against the UAE Dirham and Saudi Riyal in the open market. Against the UAE Dirham, the rupee lost 1 paisa for buying and 2 paise for selling, closing at Rs 76.01 for buying and Rs 76.60 for selling. Similarly, the PKR lost 1 paisa for buying and 2 paise for selling against the Saudi Riyal, closing at Rs 74.29 for buying and Rs 74.85 for selling.
Despite these minor fluctuations, the overall stability of the rupee against the US dollar and other major currencies signals a resilient currency performance amid global economic uncertainties. Investors and market participants continue to closely monitor the situation, especially as economic policies and geopolitical developments unfold.