Rupee’s Performance Against US Dollar Since 04 March 2025
The Pakistani rupee posted marginal gain against the US dollar, appreciating by 0.03% in the inter-bank market on Friday.
At close, the local currency settled at 280.97 against the greenback, down by Re0.10 against the previous day close.
On Thursday, the rupee depreciated by 0.04% to hit 15-month low of 281.07 in the inter-bank market.
Internationally, the US dollar drifted higher on Friday, following small losses a day earlier, as traders grappled with the outlook for the U.S. economy following President Donald Trump’s erratic messaging on trade deals and Federal Reserve interference.
The U.S. currency has oscillated wildly this week, starting with a 1% tumble against major peers on Monday after Trump threatened to fire Fed Chair Jerome Powell for not cutting interest rates quickly enough, only to surge 1.5% a day later as Trump said he never had any intention of replacing Powell, and mooted a de-escalation in his trade war with China.
A lack of actual progress towards opening talks with Beijing, though, had the dollar drooping again later in the week. For the week overall, the dollar index – which measures the currency against six major peers – is on course for just a 0.27% rise, although that would still snap a four-week losing run.
Investors are particularly in the dark about where things currently stand with China. Beijing asserted on Thursday that it has not held trade talks with Washington, although Trump repeated later in the day that direct negotiations are underway.
Oil prices, a key indicator of currency parity, rose for a second session on Friday buoyed by potential de-escalation of the US-China trade war, but the market was headed for a weekly decline of around 2% amid concerns about oversupply.
Brent crude futures gained 31 cents to $66.85 a barrel by 0650 GMT, falling 1.7% so far for the week.
US West Texas Intermediate (WTI) crude rose 35 cents to $63.12 a barrel, having declined 2.4% for the week.
“For today, oil prices are slightly up as the market responds to signs of easing tensions around Trump’s tariffs and a potential shift in the Fed’s policy stance, contributing to a broader market recovery,” said LSEG senior analyst Anh Pham.
