Rupee Strengthens Marginally Against US Dollar

KARACHI – The Pakistani rupee has recorded a slight gain against the US dollar in the interbank market on Thursday and closed at 283.67.

According to data released by the State Bank of Pakistan, the rupee appreciated by Re0.05 to 283.67 per dollar, against the previous day’s closing at 283.72.

The local currency’s marginal improvement comes as the US dollar weakened globally. It was down due to investor concerns over the future independence of the Federal Reserve and rising speculation about a potential interest rate cut.Rupee Inches Higher Against US Dollar

International media reports, particularly a Wall Street Journal article, revealed that US President Donald Trump was considering to replace Federal Reserve Chairman Jerome Powell by September or October.

Trump’s criticism of Powellhas further shaken confidence in US monetary policy.

The political pressure on the Fed also contributed to a broader cut in the dollar. The euro has strengthened by 0.4% to $1.1710 at a level that was last seen in September 2021.

Meanwhile, oil prices have also remained steady, which is another key factor influencing the rupee. Brent crude was last trading at $67.57 per barrel, which was down 11 cents. WTI crude also fell 8 cents to $64.84.

Currency experts in Karachi have observed that the rupee’s stability is backed by low import demand, stable remittance inflows, and a moderate current account deficit. However, external pressures remain, especially in light of geopolitical tensions and shifting global interest rate expectations.