The Pakistani rupee strengthened marginally against the US dollar on Thursday, appreciating by 0.1% during the early hours of trading. At 10am, the rupee was trading at 278.45, gaining Re0.27 from its previous close of 278.72 on Wednesday, according to data from the State Bank of Pakistan (SBP).
Pressure on Major Currencies
Meanwhile, the US dollar continued its surge globally, supported by rising Treasury yields. This put pressure on major currencies like the yen, euro, and sterling, which hovered near multi-month lows. Analysts attribute this movement to concerns over US President-elect Donald Trump’s economic policies as he prepares to return to office on January 20, 2025.
CNN reported that Trump is considering declaring a national economic emergency to justify universal tariffs on both allies and adversaries, while The Washington Post indicated earlier discussions of more nuanced tariffs, which Trump later denied.
The dollar index, which measures the greenback against six major currencies, stood at 109.03 on Thursday, just shy of its two-year high. The index gained 7% last year due to market adjustments to expectations of a slower pace of US rate cuts.
Oil Prices Extend Losses Amid US Stockpile Build
Oil prices, a significant indicator for currency markets, continued their downward trend on Thursday. Brent crude futures fell by 28 cents (0.4%) to $75.88 per barrel, while US West Texas Intermediate (WTI) crude dropped by 30 cents (0.4%) to $73.02 per barrel.
The losses were driven by a stronger US dollar and an unexpected rise in US fuel inventories. However, concerns over tighter supplies from OPEC members and Russia helped limit further declines. Both benchmarks had already lost more than 1% in the previous session, reflecting the impact of currency and supply dynamics on global energy markets.
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