The Pakistani rupee recorded a modest gain of 0.07% against the U.S. dollar in early trading on Tuesday, amid stable global currency markets and a pause in investor risk appetite.
At 10:00 AM, the PKR stood at 284.53 in the inter-bank market, up Re0.19 from Monday’s closing rate of 284.72, according to data from currency dealers.
Global Currency Market Overview:
The U.S. dollar remained near a three-week high on Tuesday as global traders braced for the release of U.S. inflation data, a key indicator for the Federal Reserve’s next policy moves.
Supporting the greenback:
-
Elevated U.S. Treasury yields, which increased demand for the dollar
-
Speculation around a potential exit of Jerome Powell as Fed Chair due to renewed criticism by Donald Trump
The dollar index hovered at 98.050, just below the recent peak of 98.136, the highest since June 25. Against the yen, the dollar stood at 147.68, maintaining a tight range after hitting a 20-day high of 147.89.
Meanwhile, China’s Q2 GDP growth came in at 5.2%, slightly beating expectations, but the market reaction remained muted as investors focused more on U.S. economic signals.
Cryptocurrency Update:
Bitcoin, after hitting an all-time high of $123,153.22 on Monday, eased to around $118,215, consolidating gains following a 14% weekly surge. The crypto market is watching anticipated policy wins for the industry in the U.S. this week.
Oil Prices – Currency Correlation:
Oil prices, a vital factor for import-heavy economies like Pakistan, edged lower due to easing concerns over U.S. sanctions on Russia after President Trump gave a 50-day deadline to end the Ukraine conflict.
-
Brent crude: down $0.29 to $68.92/barrel
-
WTI crude: down $0.35 to $66.63/barrel
Although crude markets initially rallied on the sanctions threat, the extended timeline for action has calmed fears of immediate supply disruptions.
PSX Soars to Record High as KSE-100 Index Surpasses 135,000
Outlook:
The rupee’s short-term direction will likely be influenced by:
-
U.S. inflation figures expected later today
-
Global oil price volatility
-
Investor sentiment surrounding the Fed’s leadership and rate policy
-
Local political and economic developments, especially fiscal targets and trade balance
Traders should stay vigilant of upcoming SBP announcements, external financing news, and geopolitical shifts, all of which have the potential to sway forex flows.