Pakistani Rupee Inches Up Against US Dollar Amid Global Market Optimism
The Pakistani rupee posted a modest gain against the US dollar on Monday, appreciating by 0.05% in the inter-bank market.
At market close, the rupee settled at Rs281.57, up by Re0.14 compared to the previous close.
Last week, however, the local currency had depreciated against the greenback, losing Re0.65 or 0.23% to close at Rs281.71, according to data from the State Bank of Pakistan (SBP).
On the global front, the US dollar strengthened in early Asian trading after weekend talks between the United States and China helped ease concerns over a potential trade war. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced on Sunday that a deal had been reached in Geneva to cut the US trade deficit with China, lifting market confidence.
The greenback, along with US treasuries and equities, had previously been under pressure after sweeping tariffs announced by President Donald Trump shook investor sentiment.
Following the talks, the US dollar climbed 0.6% to 146.19 yen, and the dollar index added 0.1%, hovering near a one-month high.
Market focus now shifts to key US economic data expected this week, particularly Consumer Price Index (CPI) figures due Tuesday, which could influence expectations regarding future Federal Reserve rate hikes.
Meanwhile, oil prices, a key driver of currency parity for import-reliant economies like Pakistan, rose sharply in Asian trading. Crude prices surged by more than $2 per barrel as easing US-China trade tensions lifted sentiment, boosting expectations that the world’s two largest oil consumers are moving toward resolving their trade dispute.
