Karachi, Pakistan – April 18, 2025: The Pakistani rupee posted a slight appreciation against the US dollar during early trading hours in the inter-bank market on Friday, continuing a trend of cautious optimism amidst a relatively stable global currency environment.
At approximately 9:53 AM, the local currency was being traded at PKR 280.45 against the greenback, reflecting a Re0.17 gain or 0.06% compared to Thursday’s closing rate of PKR 280.62. The marginal improvement comes as markets react to both domestic macroeconomic indicators and international currency movements.
Currency traders attributed the slight gain in the rupee to a combination of improving sentiment in Pakistan’s external accounts and stabilizing oil prices. Earlier in the week, the country recorded a significant current account surplus for March 2025, helping to support the local currency.
On the international front, the US dollar saw a modest rally on Thursday after recent weakness across major global currencies appeared to taper off. The dollar has largely held within a narrow trading band this week, especially against the euro, following a string of losses sparked by investor concerns over tariffs and capital outflows.
“The dollar’s recent weakness has paused for now. We’ve seen an impressive run of strength from G10 currencies, and what we’re witnessing is likely a temporary consolidation,” said Eric Theoret, a foreign exchange strategist at Scotiabank. “Our medium-term outlook remains bearish for the US dollar, but in the short term, traders are catching their breath.”
Adding to the global currency narrative, the European Central Bank (ECB) cut interest rates for the seventh time in a year, leading to a minor decline in the euro and lending strength to the dollar by comparison. The ECB’s continued dovish stance reflects ongoing economic softness across the eurozone, further influencing global currency markets.
Meanwhile, global oil markets also played a role in shaping currency dynamics. Oil prices jumped to a two-week high on Thursday after the United States imposed new sanctions aimed at restricting Iranian oil exports, raising fears of tighter global supply.
Brent crude futures climbed by $1.74 (2.64%) to $67.59 per barrel, while West Texas Intermediate (WTI) rose $1.80 (2.88%) to $64.27 per barrel. Both benchmarks had already gained over 2% on Wednesday and are now on track for their first weekly increase in nearly a month. Analysts noted that Thursday marked the last settlement day before the Easter holidays, which also led to thinner trade volumes.
The sanctions, announced by the Trump administration, included measures against a China-based independent oil refinery known as a “teapot,” signaling further geopolitical friction. The move is part of ongoing efforts to increase pressure on Tehran during sensitive nuclear negotiations.
As global financial markets continue to digest these developments, traders in Pakistan are keeping a close eye on foreign exchange trends, oil price movements, and geopolitical shifts. Analysts believe the rupee may continue to hover within a narrow range in the near term, with further appreciation dependent on sustained macroeconomic improvements and external inflows.