Rupee’s Performance Against US Dollar Since 04 March 2025
The Pakistani rupee gained further ground against the US dollar, appreciating 0.01% in the inter-bank market on Tuesday.
At close, the local currency settled at 280.97, up by Re0.04 against the US dollar, according to the State Bank of Pakistan (SBP).
The local unit closed at 281.01 on Monday.
The Monetary Policy Committee (MPC) of the SBP on Monday decided to keep the policy rate unchanged at 11%. The committee noted that headline inflation rose significantly to 5.6% in September, whereas core inflation remained unchanged at 7.3%.
Globally, the US dollar was weaker on Tuesday ahead of a slate of central bank meetings that will likely see a rate cut in the US and as investors kept a wary eye on President Donald Trump’s Asia tour, hoping for a trade deal with China.
While early signs of easing trade tensions between the world’s top two economies led to a risk rally on Monday, with the dollar slipping against rivals, investors are apprehensive any real Sino-US deal may offer far less to celebrate.
The spotlight will be on the meeting between Trump and Chinese President Xi Jinping in South Korea on Thursday. “I’ve got a lot of respect for President Xi and I think we’re going to come away with a deal,” Trump told reporters on Air Force One before landing in the Japanese capital, Tokyo.
Chinese officials have so far been circumspect about trade talks with US counterparts and have said little on the potential outcome.
The anticipation has left currency markets fairly muted so far this week.
The euro hit a one-week high of $1.1655 in early trading on Tuesday, while sterling last bought $1.3344.
The dollar index, which measures the US currency against six other units, was steady at 98.786 in early Asian hours, having eased 0.15% in the previous session.
Oil prices, a key indicator of currency parity, fell on Tuesday, marking their third day of declines as an OPEC+ plan to raise output outweighed optimism about a potential US-China trade deal.
Brent crude futures fell 83 cents or 1.26% to $64.79 a barrel at 0757 GMT. US West Texas Intermediate crude futures were down 75 cents or 1.22% at $60.56.
