The Pakistani rupee experienced a slight depreciation against the US dollar on Friday, marking a 0.05% decline in the inter-bank market. At the close of trading, the rupee settled at 279.97, reflecting a loss of 15 paisa from the previous day’s closing rate of 279.82. This minor drop in value continues the ongoing trend of fluctuations in the exchange rate, which has been influenced by a variety of international and domestic factors.
The US dollar’s performance, meanwhile, was also influenced by global economic developments. The greenback was under pressure in the international markets, languishing near a four-month low. This downturn in the dollar’s value came amid growing concerns over shifting tariff policies, which have led to increased uncertainty regarding the economic outlook for the United States. These developments were compounded by investor anxiety ahead of the release of critical jobs data, which was scheduled for later that day.
In addition to the uncertainty surrounding tariff policies, another significant factor contributing to the US dollar’s decline was President Donald Trump’s announcement of a temporary reprieve on tariffs against Mexico and Canada. However, this decision did little to ease investor concerns. The reprieve, which expires on April 2, is expected to result in reciprocal tariffs being imposed on all US trading partners. This uncertainty has left many investors seeking safer assets, with the Japanese yen emerging as a beneficiary, strengthening against the US dollar to its highest level since early October.
In early trading, the US dollar also saw a notable drop against other currencies. The greenback fell to a three-month low against the Swiss franc, trading at 0.8820 franc. Additionally, the US dollar weakened against both the Canadian dollar and the Mexican peso, signaling a broad loss of strength in international markets.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, recorded a slight decline of 0.05%, settling at 104.15. This subtle dip reflected the overall weaker sentiment surrounding the dollar, which has been struggling to maintain its strength amid global economic uncertainty.
Meanwhile, oil prices, a key factor influencing currency parity, showed little change on Friday but were on track for their largest weekly decline since October. The continued uncertainty surrounding US trade policy has raised concerns about future demand growth for oil, especially as major oil-producing nations are set to increase their output in the coming months. Brent crude futures rose by 17 cents, or 0.24%, to $69.63 per barrel by 0315 GMT. Similarly, US West Texas Intermediate (WTI) futures increased by 12 cents, or 0.18%, to $66.48 per barrel. However, despite these slight increases, both Brent and WTI prices were poised for significant weekly losses, with Brent set to decline by 4.9% and WTI expected to drop by 4.8%, marking their largest weekly declines since October 14.
The ongoing fluctuations in oil prices, coupled with the unpredictable trade policies emanating from the US, have created a volatile environment in the global markets. As a result, currencies like the Pakistani rupee are facing pressure, reflecting the broader economic challenges at play. Investors are closely monitoring developments related to US tariffs and global trade tensions, which continue to have a significant impact on currency exchange rates and market sentiment.
In conclusion, the marginal decline of the Pakistani rupee against the US dollar is part of a larger trend influenced by both domestic economic conditions and global market uncertainty. The situation remains fluid, and traders will continue to keep a close eye on developments in US trade policies and the broader economic landscape to gauge the future direction of the rupee and other major currencies.