The Pakistani rupee (PKR) posted a modest gain against the US dollar during early trading hours on Thursday, reflecting a cautious but positive sentiment in the local interbank foreign exchange market. As of 9:48 AM, the local currency was trading at PKR 280.93 per US dollar, marking a slight appreciation of Re0.04 from the previous session’s closing rate of PKR 280.97.
Though marginal, this uptick represents a 0.01% improvement, hinting at short-term stability in the foreign exchange landscape. The intra-day movement suggests market participants are responding to both local monetary indicators and a shifting global economic outlook that has tempered the dollar’s recent rally.
This gain comes at a time when the US dollar itself has paused its upward momentum on the global stage. Internationally, the dollar softened after a rebound earlier this week. The retreat followed signals from the White House of a potentially more conciliatory tone on US-China tariffs and a reassured stance on the Federal Reserve’s leadership, reducing investor anxiety that had previously supported the greenback.
On Thursday morning, the dollar was trading at 143.25 yen, bouncing back from a dip below 140 yen seen earlier in the week. The recovery was partially supported by comments from US Treasury Secretary Scott Bessent, who downplayed the idea of a targeted dollar valuation policy. Bessent also hinted at an unsustainable trajectory in current US-China trade restrictions, noting that while dialogue with China was possible, the US was not prepared to take the first step in lowering tariffs, which exceed 100% on some goods.
Against the euro, the dollar found some footing after falling to a three-and-a-half-year low of $1.1572, before stabilizing around $1.1338 in early Asia trading hours. These global currency dynamics play a key role in influencing the sentiment around the Pakistani rupee, particularly as oil prices and import costs shift in tandem.
Oil prices, which often serve as a barometer for currency trends in oil-importing nations like Pakistan, also showed slight recovery on Thursday. After a nearly 2% drop in the previous session, Brent crude futures edged up by 0.12% to $66.20 per barrel, while US West Texas Intermediate (WTI) crude rose 0.14% to $62.36 per barrel. The modest gains come amid OPEC+ uncertainties, with some members advocating for a faster pace in production increases.
Energy market analysts from ING noted that while broader risk assets experienced a bounce, “oil was left behind thanks to OPEC+ discord.” The internal division was further highlighted by Kazakhstan’s announcement that it would prioritize national production interests over OPEC+ commitments, signaling continued fragmentation within the oil cartel.
For Pakistan, where energy imports heavily influence the current account and currency parity, even minor fluctuations in crude prices or global dollar strength can have a ripple effect on the PKR’s value.
While Thursday’s appreciation may not mark a trend reversal, it provides a brief reprieve in what has been a volatile FX environment in recent weeks. Market watchers will be closely monitoring both local economic indicators and external variables—including oil price dynamics and geopolitical trade shifts—for signs of sustained movement in the rupee’s performance.