February 7, 2025 – The Pakistani rupee showed a modest recovery against the US dollar on Friday, appreciating by 0.04% in the inter-bank market. The local currency closed at 279.05 per US dollar, marking a small gain of Re0.10 compared to Thursday’s closing rate of 279.15, according to data released by the State Bank of Pakistan (SBP).
Despite this slight improvement, the rupee’s performance in the broader market remains affected by global trends and geopolitical factors. The US dollar, along with other major currencies, traded cautiously as markets awaited the release of crucial US monthly payrolls data. Traders focused their attention on the upcoming jobs report, which would provide more clarity on the strength of the US labor market.
Globally, the US dollar’s performance was muted as market participants kept a close eye on international developments. While the US labor market remained robust, economists surveyed by Reuters expect the unemployment rate to remain steady at 4.1% for January, with an estimated 170,000 jobs added. However, analysts caution that interpreting January’s employment data might be challenging, given the fluctuating economic conditions and recent geopolitical concerns.
The dollar index, which tracks the performance of the US dollar against a basket of major currencies such as the yen and the British pound, held steady at 107.69 on Friday. This came after a week of significant volatility, driven by fluctuating headlines regarding US tariff threats. Earlier in the week, the dollar had surged as high as 109.88 in response to these concerns but lost some momentum as traders awaited clearer guidance from US economic data.
In addition to labor market data, oil prices—a key factor in currency parity—also impacted the foreign exchange landscape. On Friday, oil prices saw a modest uptick but were still on track for a third consecutive week of declines. This downward trend was largely attributed to US President Donald Trump’s renewed trade tensions with China and the potential for further tariffs on other nations. As of 07:35 GMT, Brent crude oil futures rose by 52 cents, settling at $74.81 per barrel, though they were still poised for a 2.5% weekly drop. Similarly, US West Texas Intermediate (WTI) crude gained 44 cents, reaching $71.05 per barrel but remained down by about 2% for the week.
In the local open market, the Pakistani rupee saw a mixed performance against other major currencies. Against the US dollar, the PKR lost 3 paise for buying and held steady for selling, closing at 278.69 for buying and 280.90 for selling. The rupee also experienced a slight dip against the Euro, losing 11 paise for buying and 17 paise for selling, with rates closing at 289.03 for buying and 292.09 for selling.
Conversely, the rupee gained a small amount against the UAE Dirham, appreciating by 2 paise for buying, while the selling rate remained unchanged, closing at 75.96 for buying and 76.50 for selling. The Pakistani rupee maintained its value against the Saudi Riyal, with no changes in either the buying or selling rates, which settled at 74.21 and 74.75, respectively.
In the inter-bank market, the bid rate for the US dollar stood at Rs 279.05, with the offer rate at Rs 279.25. These minor fluctuations reflect a broader trend of stability in Pakistan’s foreign exchange market amid global uncertainties.
Overall, while the Pakistani rupee’s improvement against the US dollar remains modest, it continues to be influenced by international market dynamics and local economic policies. Traders and analysts will be closely watching upcoming data and geopolitical developments to gauge the currency’s future trajectory.