The Pakistani rupee registered a modest gain against the US dollar on Friday, appreciating by 0.03% in the inter-bank market amid volatile global financial conditions. According to official data, the rupee closed at Rs. 280.47, up by Re0.09 compared to the previous session’s close of Rs. 280.56.
While the movement appears slight, it reflects a moment of relative strength for the local currency in an otherwise turbulent global financial landscape. The rupee’s performance came on a day when the US dollar weakened broadly in global markets, largely due to declining investor confidence in the US economy.
On the international front, the US dollar saw sharp declines as risk-averse investors shifted their focus toward traditional safe havens such as the Swiss franc, Japanese yen, euro, and gold. The Swiss franc, in particular, surged to its highest level in a decade, while gold prices reached a fresh all-time high, highlighting the extent of investor unease.
This shift came on the back of volatile US market movements. Wall Street saw significant losses following a brief relief rally earlier in the week when former President Donald Trump announced a temporary suspension of higher tariffs on multiple trading partners. However, the lack of policy consistency rattled markets once again, with investors exiting riskier US assets in favor of more stable instruments.
In bond markets, US Treasury yields also surged, with 10-year yields on track for their biggest weekly increase since 2001 — a signal of mounting concern about inflation and economic policy uncertainty.
Oil prices, often a key indicator impacting currency markets, also experienced fluctuations. Brent crude futures rose by 90 cents, or 1.4%, to $64.23 a barrel by early morning trading, while US West Texas Intermediate (WTI) crude gained 88 cents, or 1.5%, reaching $60.95. However, despite Friday’s uptick, both benchmarks were poised for a second consecutive weekly decline due to lingering concerns over prolonged US-China trade tensions. Brent was set to fall 2.1% on the week, and WTI was down by approximately 1.8%.
Back in the domestic market, inter-bank rates for the US dollar remained stable. The bid rate stood at Rs. 280.46 while the offer was quoted at Rs. 280.66.
In the open market, however, the rupee showed mixed performance. Against the US dollar, the rupee lost 2 paise for both buying and selling, closing at Rs. 280.15 and Rs. 282.10, respectively. The rupee also weakened against the euro, shedding Rs. 7.92 for buying and Rs. 8.16 for selling, ending the day at Rs. 316.06 and Rs. 319.39.
Against regional currencies, the rupee posted marginal gains and losses. It gained 13 paise for buying against the UAE dirham but lost 1 paisa on the selling side, closing at Rs. 76.11 and Rs. 76.98, respectively. Against the Saudi riyal, it gained 1 paisa for buying but dropped 2 paise for selling, ending at Rs. 74.46 and Rs. 75.18.
As global markets continue to grapple with economic uncertainty and shifting investor sentiment, currency fluctuations are expected to persist. The rupee’s slight appreciation reflects cautious optimism, but experts warn that broader international trends will remain a key influence in the days to come.