The Pakistani rupee began the week on a slightly weaker footing, posting a marginal decline against the US dollar in the inter-bank market on Monday. The currency depreciated by 0.05%, closing the day at Rs280.60, a loss of Re0.13 from the previous session’s close. The move reflects minor fluctuations in currency parity driven by a mix of local stability and global financial uncertainty.
This depreciation comes after a relatively steady performance by the rupee last week. The local currency initially lost ground in the first three trading sessions but managed to claw back those losses in the latter half, eventually closing the week flat against the greenback at Rs280.47. This performance, as reported by the State Bank of Pakistan (SBP), marked a momentary pause in the rupee’s broader trend of fluctuation seen over recent months.
While the rupee’s minor decline may seem insignificant on its own, it signals a continued sensitivity to both internal economic developments and external pressures. In the global arena, the US dollar experienced a similar wavering trend. After briefly bouncing from a three-year low, the dollar lost momentum as markets opened on Monday, largely in response to geopolitical noise and investor skepticism around Washington’s trade policies.
US President Donald Trump’s abrupt imposition and subsequent postponement of tariffs on imported goods caused market jitters worldwide last week. These conflicting signals have added to an already volatile international trading environment, influencing investor sentiment toward the US dollar and by extension, impacting emerging market currencies like the Pakistani rupee.
As the Asian trading session unfolded, the US dollar gave up early gains and dipped against the Swiss franc, nearing a 10-year low. It last traded 0.05% lower at 0.8158 against the Swiss franc, and also weakened against the Japanese yen by 0.62%, falling to 142.62. These shifts highlight the uncertain footing of the dollar amid rising global trade tensions and ongoing monetary policy ambiguity from central banks.
Commodity markets also saw modest movements, particularly in crude oil, which is often used as a barometer for broader economic and currency health. Brent crude futures were up 6 cents, or 0.09%, to trade at $64.82 per barrel, while US West Texas Intermediate crude rose 9 cents, or 0.15%, reaching $61.59 per barrel. The slight uptick was driven by encouraging import data from China, which reported a rebound in crude oil shipments for March. However, concerns remain that the trade standoff between the US and China could suppress global growth and reduce fuel demand.
For Pakistan, the rupee’s slight depreciation remains within manageable bounds, particularly as the economy shows signs of stabilization. Record-high remittance inflows and improved foreign exchange reserves have provided some support to the local currency, even as global headwinds persist. Nevertheless, market participants and currency traders remain cautious, closely watching international policy shifts and commodity price movements that could trigger further volatility in the exchange rate.
As the week progresses, all eyes will be on both the domestic macroeconomic indicators and developments in global markets to gauge the rupee’s trajectory in the short term. The SBP’s active monitoring and interventions, if needed, will likely continue to play a central role in maintaining exchange rate stability amid a complex and fluid global financial environment.