Rupee settles lower against US dollar

Rupee's Performance Against US Dollar Since 04 March 2025

The Pakistani rupee slipped lower against the US dollar, depreciating 0.04% in the inter-bank market on Tuesday.

At close, the local currency settled at 281.67, a loss of Re0.10 against the greenback.

On Monday, the rupee closed the day at 281.57.

Internationally, the US dollar held strong gains on Tuesday as investors cheered a tariff deal between the United States and China to tap the brakes on a trade war between the world’s two largest economies that had fed fears of a global recession.

Washington and Beijing on Monday announced an agreement to slash the massive tariffs they had imposed on each other for 90 days, sparking a relief rally across markets that swept up global stocks and sent the US dollar surging.

Against a basket of currencies, the US dollar hovered near a one-month high and was last at 101.67.

The de-escalation of US-China trade tensions has in turn led traders to pare back bets of Federal Reserve rate cuts, on the view that policymakers would be under less pressure to ease monetary policy to support growth.

US Treasury yields rose in tandem, with the two-year yield steadying near a one-month high at 3.9977%, while the benchmark 10-year yield was last at 4.4551%.

Oil prices, a key indicator of currency parity, edged higher on Tuesday, with gains capped by rising supplies and caution over whether the pause in the US-China trade war will lead to a longer-term deal.

Brent crude futures gained 21 cents, or 0.3%, to $65.18 a barrel by 0919 GMT.

US West Texas Intermediate (WTI) crude was up 30 cents, or about 0.5%, at $62.25.

The two benchmarks rose by about 4% or more in the previous session after the US and China agreed on sharp reductions to tariffs for at least 90 days, which also boosted Wall Street stocks and the dollar.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 281.67

OFFER                      Rs 281.87

Open-market movement

In the open market, the PKR lost 17 paise for buying and 19 paise for selling against USD, closing at 282.22 and 283.69, respectively.

Against Euro, the PKR gained 1.79 rupee for buying and 2.89 rupees for selling, closing at 313.19 and 316.09, respectively.

Against UAE Dirham, the PKR lost 7 paise for buying and remained unchanged for selling, closing at 76.85 and 77.45, respectively.

Against Saudi Riyal, the PKR lost 9 paise for buying and remained unchanged for selling, closing at 75.11 and 75.70, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 282.22

OFFER                      Rs 283.69