Karachi, March 10, 2025 – The Pakistani rupee demonstrated a slight improvement against the US dollar, appreciating by 0.04% in the inter-bank market on Tuesday. This marginal gain of Re0.12 brought the currency’s value to 279.95 against the greenback, marking the first time since January 2024 that the rupee closed below the 280 mark. The previous day, the rupee had settled at 280.07 against the dollar.
This uptick comes as global markets exhibit a mixed response to economic uncertainties, with the US dollar facing pressure from broader global factors. On Tuesday, the Japanese yen emerged as a safe haven for investors, reaching a five-month high amid growing concerns about a tariff-driven slowdown in US economic growth. The yen touched 146.625 per US dollar before trading at 146.85, reflecting heightened investor caution regarding the US economy. As a result, the US dollar faced downward pressure, which in turn, slightly bolstered the value of emerging market currencies like the Pakistani rupee.
Meanwhile, the Australian dollar saw a modest drop of 0.4%, trading at $0.6272, while the British pound held steady above its 200-day moving average at $1.2875. The euro, despite broader concerns, remained stable just above the $1.08 mark. Other currencies such as the Canadian dollar and the Mexican peso, whose economies are sensitive to US tariffs, experienced modest declines. The Canadian dollar traded at around C$1.44 per dollar, while the Mexican peso stood at 20.34 per dollar.
International oil prices also contributed to global economic sentiment, further influencing currency movements. Brent crude futures fell by 0.1% to $69.22 per barrel, while US West Texas Intermediate crude futures lost 0.2%, settling at $65.90 per barrel. The decrease in oil prices can be attributed to growing concerns over a potential US recession and the impact of tariffs on global growth. Additionally, OPEC+ has indicated plans to increase oil supply, contributing to the downward pressure on prices.
On the open market front, the Pakistani rupee experienced a slight depreciation against the US dollar. The rupee lost 18 paisa for buying and 1 paisa for selling, closing at 279.46 and 281.50, respectively. In the inter-bank market, the dollar bid rate was recorded at 279.95, while the offer rate stood at 280.15.
Currency movements also impacted the euro and Middle Eastern currencies in the open market. Against the euro, the rupee lost 1.42 rupees for buying and 97 paisa for selling, closing at 303.52 and 306.23, respectively. Meanwhile, the rupee remained largely stable against the UAE dirham, with no change for buying, but it gained 1 paisa for selling, closing at 76.12 and 76.69, respectively. Against the Saudi riyal, the rupee lost 1 paisa for buying but remained unchanged for selling, closing at 74.50 and 75.00, respectively.
Looking ahead, the rupee’s performance remains closely tied to both domestic economic indicators and broader global market trends. The ongoing tensions around global trade, particularly with respect to US tariffs, as well as fluctuations in oil prices, will continue to shape currency exchange rates. Despite the minor appreciation of the rupee on Tuesday, market observers remain cautious as the local currency faces external pressures, including rising import bills and weaker financial inflows, which could potentially strain the rupee’s outlook in the near future.