Pakistani rupee records 28th successive gain against US dollar – Markets

Rupee’s Performance Against US Dollar Since 04 March 2025

The Pakistani rupee maintained its positive momentum against the US dollar, appreciating marginally in the inter-bank market on Tuesday.

At close, the rupee settled at 281.51, a gain of Re0.01 against the greenback. This was the rupee’s 28th successive gain against the greenback.

On Monday, the local unit closed at 281.52.

Globally, the US dollar traded near a 2-1/2 month low against the euro and close to a 10-month trough versus the risk-sensitive Aussie on Tuesday as investors cemented bets for a Federal Reserve interest rate cut this week and more to follow.

The greenback traded just shy of a more than two-month low against the British pound, with US President Donald Trump renewing calls for aggressive monetary easing.

Markets see a rate reduction of at least 25 basis points on Wednesday as a certainty, with a small chance of a super-sized 50 basis-point cut.

A total of 67 basis points of reduction is seen over the rest of this year, rising to 81 basis points by the end of January.

Trump in a social media post on Monday called on Powell to enact a “bigger” cut to benchmark interest rates in a social media post, pointing to the housing market.

Rapidly softening labour market data has been the key driver of the ramp-up in easing bets in recent weeks, resulting in a lower dollar and bond yields while pushing up equity prices, with Wall Street setting new records on Monday.

Oil prices, a key indicator of currency parity, held steady on Tuesday as markets weighed potential supply disruption from Russia after Ukrainian drone attacks on its refineries and the prospect of a US central bank interest rate cut.

Brent crude futures slipped 20 cents, or 0.3%, to $67.24 a barrel by 0819 GMT, while US West Texas Intermediate crude was at $63.11, down 19 cents, also 0.3%.

On Monday, Brent settled up 45 cents at $67.44 while WTI settled 61 cents higher at $63.30.