The Pakistani rupee posted marginal improvement against the US dollar, appreciating 0.07% during trading in the interbank market on Thursday.
At 10am, the local currency hovered at 283.53, a gain of Re0.19 against the greenback.
On Wednesday, the rupee settled at 283.72.
Internationally, the US dollar slipped to multi-year lows against the euro and Swiss franc on Thursday as concerns about the future independence of the U.S. Federal Reserve undermined faith in the soundness of the country’s monetary policy.
According to a Wall Street Journal report, U.S. President Donald Trump had toyed with the idea of selecting and announcing Federal Reserve Chair Jerome Powell’s replacement by September or October, aiming to undermine his position.
Trump on Wednesday called Powell “terrible” for not lowering interest rates sharply, while the Fed Chair was telling the Senate that policy had to be cautious as the President’s tariff plans were a risk to inflation.
Markets have nudged up the chance of a rate cut at the Fed’s next meeting in July to 25%, from just 12% a week ago, and are pricing in 64 basis points of cuts by year-end, up from around 46 basis points last Friday.
For now, though, the dollar was under broad pressure as the euro gained 0.4% to $1.1710, its highest since September 2021. The break of resistance at $1.1692 opened the way to the next chart target up at $1.1909.
The dollar lost 0.4% on the yen to 144.62, while the dollar index sank to its lowest since early 2022 at 97.401.
Trump’s chaotic tariff policies are also coming back into focus as the clock ticks down to his July 9 deadline for trade deals.
Oil prices, a key indicator of currency parity, inched higher, extending gains from the previous day as a larger-than-expected draw in U.S. crude stocks signalled firm demand, while investors remained cautious about the Iran-Israel ceasefire and stability in the Middle East.
Brent crude futures rose 15 cents, or 0.2%, to $67.83 a barrel by 0330 GMT. U.S. West Texas Intermediate (WTI) crude gained 20 cents, or 0.3%, to $65.12 a barrel.
Both benchmarks climbed nearly 1% on Wednesday, recovering from early-week losses after data showed resilient U.S. demand.
This is an intra-day update
American Dollar Exchange Rate