The Pakistani rupee experienced a slight decline against the US dollar in the inter-bank market on Tuesday, marking a 0.06% depreciation. The currency settled at 280.42 against the greenback, down by Re0.16 from the previous day’s closing of 280.26. This minor dip in the rupee’s value reflects the ongoing fluctuations in currency markets, both locally and globally.
The rupee’s slight dip comes amid broader market dynamics. Internationally, the US dollar saw a significant surge, climbing to a three-week high against the Japanese yen. The dollar’s strength was driven by the release of strong US services data, which provided support to the greenback’s performance. Additionally, there was growing optimism surrounding trade tariffs after US President Donald Trump stated that not all of the tariffs he had threatened to impose would take effect on April 2. Some countries might be granted exceptions, which helped alleviate fears about a slowdown in US growth and gave a boost to the US dollar.
The US dollar surged by 0.9%, breaching the 150 yen mark, and continued to climb during the Asia trading session, reaching a high of 150.92 yen. This marked its strongest position in three weeks. The dollar also gained against the euro, hitting its highest level since March 6 at $1.0781 per euro, as a rally in the common currency began to lose momentum. By the close of trading, the US dollar was trading at $1.0796 per euro. The British pound also experienced some weakness, dropping to a two-week low of $1.2883 before recovering slightly to $1.2918 in Asia trade.
The strength of the US dollar was further evidenced by its performance on the US Dollar Index, which notched its fourth consecutive session of gains, settling at 104.3. This trend indicates a strong momentum for the US dollar in global markets, driven by a combination of favorable economic data and easing concerns over tariff impacts.
On the global commodity front, oil prices also played a role in influencing currency values. Oil prices rose for the fifth consecutive day on Tuesday, driven by concerns that global supply could tighten following the US’s announcement of tariffs on countries purchasing Venezuelan crude. Brent crude futures gained 27 cents to settle at $73.27 a barrel by 0749 GMT, while US West Texas Intermediate (WTI) crude rose 26 cents to $69.37. Both benchmarks had gained over 1% in the previous session, reflecting the ongoing concerns about global oil supply disruptions.
For the Pakistani rupee, these global shifts in the value of the US dollar and oil prices have had a direct impact on its performance. As the global financial landscape fluctuates, the rupee continues to reflect both international and domestic economic factors. The recent trend shows that while the rupee has shown some resilience, it remains susceptible to global market movements, particularly those involving the US dollar and oil prices.
In the coming days, market watchers will be keeping an eye on further developments in both the global economy and the local financial landscape to gauge the rupee’s direction. The recent performance of the US dollar suggests that currency markets will continue to experience volatility, which could further affect the Pakistani rupee’s exchange rate.