The Pakistani rupee continued its downward trajectory against the US dollar on Tuesday, April 8, 2025, with a slight depreciation of 0.06% in the inter-bank market. The currency closed at 280.73, marking a loss of Re0.16 from the previous day’s closing of 280.57. This further decline in the rupee’s value against the dollar highlights the ongoing volatility in global markets and mounting concerns about economic uncertainty.
The dip in the rupee came amid a broader weakening of global currencies, as financial markets struggled to navigate the repercussions of escalating trade tensions and fears of a potential recession. Investors, uncertain about the global economic outlook, turned to traditional safe-haven currencies, such as the Japanese yen and the Swiss franc, which had recently reached six-month highs. As a result, the US dollar experienced broad losses in the international market, further contributing to the rupee’s depreciation.
In international trading, the Japanese yen strengthened to 147.325 per US dollar, approaching its six-month high of 144.82 seen on Friday. Similarly, the Swiss franc also held near a six-month high at 0.85665 per dollar. The dollar, which is typically regarded as a safe-haven currency, has faced growing pressure due to rising uncertainties surrounding President Donald Trump’s sweeping tariffs and their potential impact on U.S. economic growth.
Markets are increasingly concerned that the escalating trade war, particularly between the U.S. and China, could push the global economy into a recession, leading to a potential cut in U.S. interest rates. Analysts believe that such a rate cut could occur as early as May, further eroding the dollar’s yield advantage and causing it to weaken against other major currencies.
The dollar index, which tracks the value of the greenback against six other major currencies, fell by 0.44% on Tuesday, and it has dropped over 1% since the announcement of the tariffs last week. The U.S. currency’s decline came amid renewed concerns about the broader economic impact of the trade war, which has led to increased volatility in the currency and equity markets.
Meanwhile, oil prices, a key indicator of currency parity, showed signs of stabilization but remained near four-year lows due to ongoing recession fears. On Tuesday, Brent crude futures edged up by 13 cents, or 0.2%, to settle at $64.34 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose by 18 cents, or 0.3%, to $60.88 per barrel. Despite the slight recovery in oil prices, the global market sentiment remains fragile, with investors keeping a close eye on the trade conflict between the U.S. and China, the world’s two largest economies.
In the open market, the Pakistani rupee showed mixed performance against major currencies. The rupee gained 1 paisa for buying against the US dollar, closing at 279.74, while the selling price remained unchanged at 281.96. The PKR also gained ground against the euro, appreciating by 77 paisa for buying and 48 paisa for selling, closing at 305.25 and 308.61, respectively. Against the UAE Dirham, the rupee remained steady for buying but gained 1 paisa for selling, ending the day at 76.03 and 76.72, respectively. The PKR also gained 4 paisa for both buying and selling against the Saudi Riyal, closing at 74.25 and 74.92, respectively.
Despite some positive movement in the open market, the overall trend for the rupee remains downward as global economic uncertainty continues to weigh on investor sentiment. The ongoing concerns over rising tariffs and the potential for a global recession are expected to keep the markets volatile in the coming weeks, with the Pakistani rupee’s performance continuing to be influenced by broader international economic conditions. As global markets digest the impact of these developments, the future trajectory of the rupee remains uncertain, with analysts closely monitoring the evolving situation.