Intra-day update: rupee remains stable against US dollar

The Pakistani rupee remained unchanged against the US dollar during the opening hours of trading in the inter-bank market on Friday.

At 10:20am, the rupee was hovering at 280.05 against the greenback.

On Thursday, the rupee had closed at 280.05.

Internationally, the US dollar was broadly firmer on Friday with the euro pulling further away from a five-month peak as markets grappled with escalating global trade tensions and risks of a sharp economic downturn.

Sowing more volatility across markets, US President Donald Trump threatened to hit Europe with a 200% tariff on wine, cognac and other alcohol imports.

The escalating tensions between the traditional allies came after the EU bloc announced plans to impose levies on American whiskey and other products next month, which itself was a response to Trump’s 25% tariffs on steel and aluminium imports that took effect earlier this week.

The intensifying global trade skirmish has fuelled uncertainty and fears about a potentially sharp economic slowdown, with the S&P 500 tumbling into correction territory on Thursday as investors piled into US Treasuries and other safe-haven assets.

The euro edged down to $1.0847 after sliding further off Tuesday’s five-month peak the previous day as the EU-US trade spat rattled markets and Germany struggled to pass a massive spending proposal.

Hopes of an imminent ceasefire between Ukraine and Russia were also fading as Moscow said it supported the US proposal but suggested it would need some serious reworking.

Oil prices, a key indicator of currency parity, rebounded on Friday to recover some of their more than 1% losses in the previous session, partly due to diminishing prospects of a quick end to the Ukraine war that could bring back more Russian energy supplies.

Brent crude futures rose 46 cents, or 0.7%, to $70.34 a barrel by 0406 GMT after settling 1.5% lower in the previous session.

US West Texas Intermediate crude was at $67.03 a barrel, up 48 cents, or 0.7%, after closing down 1.7% on Thursday.

This is an intra-day update