The Pakistani rupee continued its decline against the US dollar on Monday, losing 0.02% in the early hours of inter-bank trading. As of 10:15 AM, the rupee stood at 284.52, down Re0.06 from the previous close.
Last week, the rupee had already dropped Re0.49, or 0.17%, closing at 284.46 against the greenback, compared to 283.97 a week earlier, according to the State Bank of Pakistan (SBP).
The weakening of the rupee comes amid broader global currency market unease, driven by renewed tariff threats from U.S. President Donald Trump. Over the weekend, Trump announced plans to impose a 30% tariff on imports from the European Union and Mexico, effective August 1, via public letters posted to his Truth Social platform.
The EU and Mexico swiftly criticized the tariffs as “unfair and disruptive”, with the European Commission extending its suspension of countermeasures in hopes of a diplomatic resolution.
In global currency markets, initial reactions were muted. The euro slipped to a three-week low, falling 0.12% to $1.1679, while the Mexican peso lost 0.25%, trading at 18.6699 against the dollar. The British pound saw a slight dip of 0.07% to $1.3481, and the Japanese yen firmed 0.1% to 147.28 per dollar.
Despite heightened geopolitical tension, U.S. stock markets remained strong, and the dollar gained only modestly, signaling that investors have grown desensitized to repeated tariff threats.
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Oil prices, a key external driver for many emerging market currencies including Pakistan’s, also nudged higher. Brent crude rose 15 cents to $70.51 per barrel, while West Texas Intermediate (WTI) increased 14 cents to $68.59, continuing gains from Friday.
The rupee’s movement in the coming days will likely depend on a combination of oil prices, foreign exchange inflows, and the monetary policy outlook, as Pakistan navigates economic challenges amid global trade uncertainties.
