The Pakistani rupee showed a slight appreciation against the US dollar during the early hours of intra-day trading on Monday, March 24, 2025. As of 10:30 AM, the local currency was trading at 280.23 against the greenback, reflecting a marginal gain of Re0.03 or 0.01%. This small uptick in the rupee’s value followed a period of relative stability, with the currency showing little movement against the US dollar throughout the previous week.
The exchange rate of the rupee had closed the previous week at 280.26, which was a minor decline of Re0.04 or 0.01% from the prior week’s closing value of 280.22, according to data from the State Bank of Pakistan (SBP). This reflects the ongoing fluctuation in the currency market, where the rupee continues to face pressure from both domestic and global economic factors.
In the broader context, the US dollar remained relatively stable in international markets. On Monday morning, the US dollar hovered just below a three-week high against its major counterparts as global traders awaited further developments regarding US President Donald Trump’s trade policies, particularly the impending tariffs that are expected to be announced in early April. The uncertainty surrounding these tariffs has contributed to a sense of caution among market participants, which has left the US dollar index relatively flat at 104.03 at 0049 GMT. The index had risen to 104.22 on Friday, marking its highest level since March 7, 2025.
Despite the pressure on the US dollar for much of the year, the currency showed resilience due to the market’s mixed expectations of President Trump’s policies. Initial assumptions about pro-growth measures have been tempered by concerns that aggressive trade tactics, including tariffs, could potentially lead to a recession. As the situation continues to unfold, attention is shifting towards the next round of tariffs, set for April 2, 2025, when the White House is expected to announce reciprocal levies on several countries.
On the other hand, the euro managed to edge slightly higher following three consecutive sessions of declines, while the Japanese yen saw a decline against the US dollar. The yen’s performance was influenced by an uptick in US Treasury yields, with the 10-year bond yield rising by 2.5 basis points to reach 4.2770%. This dynamic has been a significant factor in influencing currency movements, particularly between the US dollar and yen.
The shared European currency had been buoyed by optimism last week, driven by Germany’s decision to ease fiscal constraints in order to increase military and infrastructure spending. This had pushed the euro to its highest level since October, reaching $1.0955. However, currency traders are now closely monitoring any new developments that may influence the euro’s future performance.
Oil prices, which are often an important indicator of currency parity, showed some signs of weakness on Monday, as investors continued to assess the potential impact of ceasefire talks aimed at resolving the Russia-Ukraine conflict. The prospect of increased Russian oil exports to the global market contributed to the dip in prices. By 0409 GMT, Brent crude futures were down by 25 cents, or 0.4%, at $71.91 per barrel, while US West Texas Intermediate crude fell by 20 cents, or 0.3%, to $68.08.
Despite this dip, both oil benchmarks had settled higher on Friday, recording their second consecutive weekly gain. This positive momentum was largely driven by renewed expectations of tighter global supply, bolstered by new US sanctions on Iran and plans from the OPEC+ producer group to manage output.
In conclusion, while the Pakistani rupee registered a marginal gain in intra-day trading, the broader currency and commodity markets continue to show a mix of caution and optimism, influenced by geopolitical factors, trade policies, and global economic trends. As the situation develops, both local and international market participants will continue to closely monitor these variables to navigate the ongoing volatility.