Rupee's Performance Against US Dollar Since 04 March 2025
The Pakistani rupee registered marginal gain against the US dollar in the inter-bank market on Tuesday.
At close, the local currency settled at 279.45, a gain of Re0.01 against the greenback.
On Monday, the local unit closed at 279.46.
Pakistan’s trade deficit significantly increased by 25% to $25.04 billion in the first eight months of the current fiscal year (8MFY26), as compared to the same period of the previous year, data released by the Pakistan Bureau of Statistics (PBS) showed on Tuesday.
Internationally, the yen and euro were broadly lower on Tuesday as the widening Middle East conflict focused attention on countries dependent on energy imports and how central banks may respond to inflation pressures.
The US dollar benefited from safe-haven demand as the US and Israeli air war against Iran spilled out into neighboring countries.
The euro steadied after sliding more than 1% as doubts swirled about when oil shipments from the region will be restored.
The dollar index, which measures the greenback against a basket of currencies, traded at 98.49 after a 0.9% surge in the previous session.
The euro edged up 0.07% to $1.1695.
Euro sags, dollar gains as Iran war lifts energy prices
The yen tacked on 0.09% to 157.2 per dollar after a 0.8% tumble in Monday’s session. Sterling was little changed at $1.3407.
Israel attacked Lebanon in response to strikes by Hezbollah, and Tehran kept up its missile and drone attacks on Gulf states.
Qatar halted its production of liquefied natural gas on Monday, prompting precautionary shutdowns of oil and gas facilities across the Middle East.
Europe and Japan are more exposed to higher energy costs than the US, which is a net energy exporter.
Concerns that higher inflation will delay the Federal Reserve’s next cut in interest rates also boosted the dollar.
A rate cut is no longer fully priced in until September, compared to previous expectations of July, based on pricing in the Fed funds futures market.
Traders continue to price in two 25-basis-point cuts by year-end.
Oil prices, a key indicator of currency parity, rose more than $4 on Tuesday, soaring for a third session as the U.S.-Israeli conflict with Iran widens, disrupting fuel shipments and heightening fears of further Middle East oil and gas supply disruption.
Brent crude futures were up $4.94, or 6%, at $82.68 a barrel by 1028 GMT after touching their highest since July 2024 at $82.80.
U.S. West Texas Intermediate crude gained $4.68, or 7%, to $75.91 after hitting its highest since June at $76.02.
Inter-bank market rates for dollar on Tuesday
BID Rs 279.45
OFFER Rs 279.65
Open-market movement
In the open market, the PKR gained 13 paise for buying and remained unchanged for selling against USD, closing at 279.20 and 280.50, respectively.
Against Euro, the PKR gained 1.34 rupee for buying and 2.14 rupees for selling, closing at 324.22 and 328.39, respectively.
Against UAE Dirham, the PKR lost 8 paise for buying and 1 paisa for selling, closing at 75.63 and 76.77, respectively.
Against Saudi Riyal, the PKR lost 2 paise for buying and gained 23 paise for selling, closing at 73.91 and 74.91, respectively.
Open-market rates for dollar on Tuesday
BID Rs 279.20
OFFER Rs 280.50
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