The Pakistani rupee experienced a slight decline against the US dollar on Thursday, marking a modest depreciation of 0.14% in the interbank market. The currency closed at 280.56, down by Re0.40 compared to the previous day’s rate. This decline is a continuation of the rupee’s volatility, reflecting the complex dynamics in global and local markets.
In the previous week, the rupee had seen a marginal appreciation against the US dollar. It gained Re0.10, or 0.03%, in the interbank market, settling at 280.16. This marked a small improvement compared to the 280.26 rate it had recorded at the close of the previous week. The rupee’s performance in the market has been fluctuating, with no significant long-term trend emerging.
While the Pakistani rupee faced slight downward pressure, the international US dollar saw broader movements that influenced its value on Thursday. A sharp global shift occurred following an announcement by US President Donald Trump. Trump revealed that he would impose a 10% baseline tariff on all imports into the United States, alongside increased duties on certain other trading partners. The new tariffs are set to take effect on April 9, and are expected to target around 60 countries. The announcement sent shockwaves through the markets, causing global stocks to drop and investors to seek the safety of traditional safe-haven assets such as the Japanese yen and Swiss franc.
This announcement marked an escalation in the ongoing trade tensions between the US and several of its trading partners. Since taking office, President Trump has already imposed tariffs on aluminum, steel, autos, and other goods from China, and this new round of tariffs could signal the beginning of a more intense trade conflict. The uncertainty surrounding these actions caused a broad decline in risk-sensitive currencies, such as the Australian and New Zealand dollars, which both weakened against the greenback.
As a result of the heightened geopolitical tensions and market volatility, the US dollar weakened slightly, with the dollar index, which measures the value of the greenback against six other major currencies, falling to 103.13—its lowest level since mid-October. Despite this, the US dollar remained relatively strong compared to many other global currencies. Oil prices, which are closely tied to currency movements, also took a hit, falling by more than 3% on Thursday after concerns grew that the new tariffs could lead to a global economic slowdown and reduce fuel demand. Brent crude futures dropped by $2.66, or 3.55%, to $72.29 per barrel, while US West Texas Intermediate crude futures fell by $2.69, or 3.75%, to $69.02.
In Pakistan’s open market, the rupee also showed signs of weakness. The PKR lost 28 paise for buying and 14 paise for selling against the US dollar, closing at 279.99 and 281.99, respectively. This marked a continuation of the local currency’s struggles against the greenback. The rupee also saw depreciation against other major currencies in the open market. It lost 5.87 rupees for buying and 5.69 rupees for selling against the Euro, closing at 306.73 and 309.57, respectively. Against the UAE Dirham, the rupee lost 6 paise for buying and 18 paise for selling, closing at 76.05 and 76.73, respectively. Similarly, against the Saudi Riyal, the rupee lost 16 paise for buying and 8 paise for selling, closing at 74.40 and 74.97, respectively.
Despite these fluctuations in the local currency market, the Pakistani rupee’s performance against the US dollar remains subject to both domestic economic factors and global developments. While short-term pressures persist, ongoing monitoring of the global trade environment and local fiscal policies will be crucial in determining the currency’s trajectory in the coming weeks.