The Pakistani rupee showed a slight gain against the US dollar, appreciating by 0.1% during early trading hours in the inter-bank market on Friday. By 10:20 AM, the rupee was trading at around 278.05, up by Re0.34 from the previous close of 278.39 on Thursday, which had marked a Re0.09 loss.
In recent weeks, the rupee has fluctuated between 277-279 against the dollar as Pakistan progresses with its plans for an extended International Monetary Fund (IMF) bailout program.
Globally, the US dollar remained near an eight-week low on Friday, with the market anticipating a crucial US jobs report that could influence the Federal Reserve’s decision on interest rate cuts. The euro maintained its gains after the European Central Bank’s rate reduction, though future easing remains uncertain due to persistent inflation.
The US dollar index, measuring the dollar against the euro and five other major currencies, was steady at 104.13, close to its weekly low of 103.99, which it hadn’t dipped below since April 9. This week, the index is expected to decline by 0.5%, influenced by weaker macroeconomic data suggesting two potential quarter-point rate cuts by the Fed this year.
Oil prices, which significantly impact currency parity, edged higher on Friday. Brent crude futures rose by 2 cents to $79.89 per barrel, and US West Texas Intermediate crude futures increased by 4 cents to $75.59 as of 03:18 GMT. These price movements followed reassurances from OPEC+ members Saudi Arabia and Russia about their readiness to adjust output agreements, although the market was on track for a third consecutive weekly loss.
