The Pakistani rupee posted marginal gain against the US dollar, appreciating by 0.10% in the inter-bank market during intra-day trading on Friday.
At 10:00am, the local currency was hovering at 280.78 against the greenback, down by Re0.29 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, edged higher on Friday but were on track for a weekly loss as a potential OPEC+ output increase and a possible ceasefire in the Russia-Ukraine war may raise supply at the same time conflicting U.S. tariff signals limit the demand outlook.
Brent crude futures gained 5 cents to $66.60 a barrel by 0001 GMT, on track to fall 2% for the week.
U.S. West Texas Intermediate (WTI) crude rose 6 cents to $62.85 a barrel but was set to decline 2.9% for the week.
The United States and Russia are moving in the right direction to end the war in Ukraine, but some specific elements of a deal remain to be agreed, Russian Foreign Minister Sergey Lavrov said in an interview with CBS News.
This is intra-day update
