On Friday, during the early trading session in the interbank market, the Pakistani rupee appreciated by 0.25% against the US dollar, leading to a 72-paisa decline in the dollar’s value, bringing it down to Rs283.50.
This development comes a day after the dollar had closed at Rs284.22 on Thursday. The rupee’s improvement is attributed to cautious investor behavior and the weakening of the dollar in global currency markets.
Globally, the US dollar remains steady near a two-week low and is heading towards its largest weekly drop of the month. Investors are awaiting potential tariff negotiations in the US and the upcoming policy meetings of major global central banks next week to gauge the direction of the global economy.
It is expected that both the US Federal Reserve and the Bank of Japan will maintain their interest rates at current levels in their upcoming meetings. However, investors are closely monitoring the post-meeting statements for clues on future policy directions.
Meanwhile, Japan’s recent reduction of import tariffs on vehicles by up to 15%, following a trade agreement with the US, is strengthening expectations of potential interest rate hikes.
The Japanese yen has gained 1% this week, trading at 147.10, its strongest performance since mid-May. Meanwhile, the US dollar index is down 1%, heading toward its weakest level of the month.
