RECORDER REPORT
KARACHI: The Pakistani rupee posted marginal decline against the US dollar, depreciating 0.02% in the interbank market on Friday.
At close, the currency settled at 283.72, a loss of Re0.05 against the greenback.
On Thursday, the rupee settled at 283.67.
Globally, the US dollar wobbled on Friday, hovering near its lowest level in 3-1/2 years against the euro and sterling, as traders wagered on deeper US rate cuts while awaiting trade deals ahead of a July deadline for President Donald Trump’s tariffs.
With the geopolitical tremors of the Israel-Iran conflict in the rear view after a ceasefire that appeared to be holding, market focus this week has been on US monetary policy.
The prospect of Trump announcing the next Federal Reserve chair, expected to be more dovish, earlier than usual to undermine the current Chair Jerome Powell, has raised the odds of the central bank cutting rates.
Powell, whose term ends in May, was also interpreted as being more dovish this week in testimony to US Congress, adding to expectations of more rate cuts. Traders are now pricing in 64 basis points (bps) of easing this year versus 46 bps expected on Friday.
Trump has not decided on a replacement for Powell, and a decision is not imminent, a person familiar with the White House’s deliberations told Reuters on Thursday.
Trump has repeatedly attacked Powell and called for rate cuts this year, stoking investor worries about the slow erosion of the US central bank’s independence and credibility.
The dollar index, which measures the US unit versus six other currencies, was lingering near its lowest since March 2022 at 97.398, on course for a 2% decline in June, its sixth straight month in the red.
Oil prices, a key indicator of currency parity, rose on Friday but were set for their steepest weekly decline since March 2023, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.
Brent crude futures were up 53 cents, or 0.78%, to $68.26 a barrel at 1457 GMT, while US West Texas Intermediate crude was up 59 cents, or 0.9%, to $65.82.
During the 12-day war that started after Israel targeted Iran’s nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after US President Donald Trump announced an Iran-Israel ceasefire.
That put both contracts on course for a weekly fall of about 12%.
Open-market movement
In the open market, the PKR lost 19 paise for buying and 15 paise for selling against USD, closing at 284.95 and 286.10, respectively.
Against Euro, the PKR lost 3 paise for buying and 6 paise for selling, closing at 333.01 and 335.45, respectively.
Against UAE Dirham, the PKR lost 3 paise for buying and 5 paise for selling, closing at 77.65 and 78.10, respectively.
Against Saudi Riyal, the PKR lost 4 paise for buying and 10 paise for selling, closing at 75.97 and 76.40, respectively.
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Open Bid Rs 284.95
Open Offer Rs 286.10
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Friday
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Open Bid Rs 283.72
Open Offer Rs 283.92
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RUPEE IN LAHORE: The Pak rupee witnessed a strong position against the US dollar while kept losing against the British pound at the weekend.
According to local market sources, the Pak rupee closed at Rs 285.90 and Rs 286.10 against the US dollar compared to the previous closing of Rs 285.70 and Rs 285.95, respectively.
However, regarding the British pound, the Pak rupee witnessed a closing at Rs 392.00 and Rs 394.00 against the previous closing of Rs 387.00 and Rs 389.30 respectively.
Copyright Business Recorder, 2025
