The Pakistani rupee saw a modest gain of 0.08% against the US dollar during early trading on Friday, appreciating by Re0.22 to reach 279.5 in the inter-bank market. This marks a slight improvement from Thursday’s closing rate of 279.72.
On the global front, the US dollar found support as a safe-haven currency ahead of US President Donald Trump’s upcoming tariffs. However, it was still on track for a monthly loss as investors weighed the tariff threats against a deteriorating US growth outlook. The US dollar index rose to 107.24, up nearly 0.9% on Thursday, but is still set for a monthly decline of 1.1%, its biggest drop since August.
A series of weaker-than-expected US economic data has prompted traders to increase expectations of further Federal Reserve rate cuts this year, leading to a decrease in US Treasury yields and contributing to downward pressure on the dollar.
Additionally, oil prices, which are closely linked to currency movements, dropped on Friday, with Brent crude futures slipping 0.4% to $73.26 a barrel. This marks the first monthly decline for oil prices since November, driven by concerns over global economic growth and demand, further fueled by the uncertainty surrounding the US economy and its tariffs.
Both Brent and US West Texas Intermediate crude are headed for their first monthly decrease in three months, as investors remain cautious about the potential impact of the US economic slowdown and trade tensions.
