Intra-Day Update: Pakistani Rupee Strengthens Against the US Dollar
The Pakistani rupee continued its positive trend, gaining 0.09% against the US dollar during the early hours of trading on Monday in the inter-bank market. At 10:15 AM, the rupee stood at 282.47, marking an increase of Re0.25 compared to the previous session.
Last week, the rupee also appreciated, moving up by Re0.73, or 0.26%. The currency closed at 282.72, down from 283.45 the last week, according to State Bank of Pakistan (SBP) data.
Globally, the US currency, which was under pressure, rose marginally on Monday. This followed a disappointing US jobs report and the surprise dismissal of a senior labor official by President Donald Trump, forcing investors to reassess their expectations for Federal Reserve rate cuts.
The US July job report revealed softer-than-predicted job creation, and the two prior months’ jobs were revised lower by a substantial 258,000 jobs. Trump’s removal of Bureau of Labor Statistics Commissioner, Erika McEntarfer, created more doubt, as he accused her of fudging jobs statistics.
Moreover, the resignation of Federal Reserve Governor Adriana Kugler created space for President Trump to exert greater control over the central bank’s future policies sooner than anticipated. Trump has criticized the Fed for not lowering interest rates earlier.
These advancements led to a steep decline in the US dollar last week, which fell more than 2% against the yen and nearly 1.5% against the euro. The greenback regained some of its losses on Monday as it gained 0.14% against the Japanese yen to 147.60.
The euro fell by 0.2% to $1.1560, while the British pound decreased by 0.1% to $1.3263. The US dollar also increased slightly by 0.2% against a basket of other currencies, trading at 98.86 after plummeting sharply by over 1% on Friday.
In the meantime, oil prices, which tend to influence currency trends, slid further on Monday. OPEC+ has committed to adding oil production in September, fueling worries about weakening US economic growth, the world’s biggest oil-consuming nation. Brent crude futures decreased 0.57% to $69.27 a barrel, while US West Texas Intermediate crude decreased 0.55% to $66.96 a barrel.
