The Pakistani rupee experienced a slight depreciation against the US dollar in the inter-bank market during early trading hours on Thursday, recording a 0.03% drop.
Rupee Exchange Rate Update
At 10:30 AM, the PKR was trading at 279.03 per USD, reflecting a minor loss of Re0.07 compared to its last close at 278.96 on Tuesday. The local currency market remained closed on Wednesday in observance of Kashmir Day.
Global Currency Trends
The US dollar weakened against major currencies, hitting an eight-week low against the Japanese yen and nearing a one-month low versus the British pound. The decline was attributed to easing concerns over a global trade war impacting inflation.
Key International Currency Movements:
- US Dollar to Yen: Dropped 0.5% to 151.81 yen (lowest since Dec 12), following a 1.1% decline on Wednesday.
- British Pound to US Dollar: Sterling remained steady at $1.2509, reaching as high as $1.2550 in the previous session (highest since Jan 7).
- US Dollar Index: Stood at 107.57, hovering near its overnight low of 107.29.
The dollar index, which gauges the greenback’s strength against six major currencies, had surged to 109.88 earlier in the week on concerns of potential US tariffs on Mexico and Canada. However, last-minute reprieves helped stabilize market confidence.
Oil Prices and Their Impact on Currency Markets
Oil prices, a crucial factor in currency valuation, edged up in early Asian trading on Thursday after a sharp drop the previous day. Saudi Aramco announced a significant price hike for March oil deliveries to Asian markets, driven by rising demand in China and India amid supply disruptions caused by US sanctions on Russia.
Crude Oil Market Update:
- Brent Crude: Increased $0.14 (0.19%) to $74.75 per barrel.
- US West Texas Intermediate (WTI) Crude: Rose $0.18 (0.25%) to $71.21 per barrel.
