The Pakistani rupee has experienced a slight depreciation against the US dollar, marking a 0.03% decline in the inter-bank market on Thursday, March 13, 2025. This slight dip in the rupee’s value comes after the currency settled at 280.05 against the US dollar, showing a loss of Re0.08 compared to the previous day’s closing of 279.97.
This marginal decline in the rupee’s value is part of a broader trend of fluctuations in the foreign exchange markets that have been influenced by both global and local economic factors. On the global front, the US dollar saw a modest rebound on Thursday, largely due to a rise in US Treasury yields. However, overall currency markets remained volatile as investors continued to struggle with the uncertain impact of an escalating global trade war. This tension has raised concerns about its potential effects on US inflation and economic growth.
The international trade environment has become increasingly tense, particularly with the recent actions of US President Donald Trump. On Wednesday, Trump threatened to impose further tariffs on goods imported from the European Union. This announcement comes amid growing concerns that the US could face retaliatory trade actions from its major trading partners, especially in response to the ongoing trade barriers imposed by the Trump administration.
The rise in global trade tensions, combined with fears of a potential US recession, has contributed to considerable volatility in the foreign exchange markets. Traders are experiencing a tug-of-war between optimism and concern, as they try to anticipate the consequences of these geopolitical developments on currency values and economic stability.
Despite these global uncertainties, the early Asian trading session on Thursday saw a slight reduction in the market’s immediate anxiety. Investors appeared to take a breath after the whirlwind of headlines surrounding the US’s trade policy. The US dollar managed to rise 0.05% against the Japanese yen to reach 148.31. This recovery followed a dip earlier in the week, during which the dollar had hit a five-month low against the yen. This decline had been driven by fears of a US economic slowdown, which prompted many investors to flock to the yen as a safe haven currency.
Meanwhile, economic data from the US on Wednesday showed that inflation had risen at a slightly slower pace than expected in February. However, many analysts are cautious, as they believe that the relief this data offers could be short-lived. The full impact of President Trump’s tariffs has yet to be fully reflected in the economic data, and many expect inflationary pressures to increase as these trade barriers take effect in the coming months.
Oil prices, another key factor influencing currency parity, were largely stable on Thursday. After a surge in prices the day before, due to a larger-than-expected decline in US gasoline stocks, both Brent and US West Texas Intermediate crude futures saw minor gains. Brent futures were up by 17 cents, trading at $71.12 a barrel, while US WTI crude futures increased by 13 cents, reaching $67.81 a barrel. The rally on Wednesday had been sparked by tighter-than-expected oil inventories in the US, while traders weighed macroeconomic concerns against strong near-term demand expectations.
In conclusion, the Pakistani rupee’s modest decline against the US dollar is part of a complex global economic picture influenced by shifting trade policies, inflationary trends, and fluctuating oil prices. As global trade tensions persist and US inflation remains a key concern, the rupee’s performance will continue to be closely watched by market participants in the coming weeks.