The Pakistani rupee saw marginal decline against the US dollar, depreciating 0.05% in the inter-bank market on Tuesday.
At close, the local currency settles at 282.12, a loss of Re0.15 against the greenback.
On Monday, the Pakistani rupee closed the day at 281.97.
Internationally, the US dollar touched a six-week low on Tuesday on signs of fragility in the US economy because of damage from the trade war President Donald Trump’s administration is waging.
While global equity markets have broadly recovered in the wake of the on-again, off-again saga of Trump’s tariff threats, the greenback remains firmly on its back. Factory and jobs data in the United States in the coming days may give further signs of the toll that trade uncertainty is wreaking on the world’s biggest economy.
US duties on imported steel and aluminum are set to double to 50% starting on Wednesday, the same day the Trump administration expects countries to submit their best offers in trade negotiations.
The dollar index, which measures the US currency against six major peers, touched 98.58, the lowest since late April, before rebounding 0.3%. The greenback rallied 0.3% to 143.21 yen.
The dollar index sank 0.8% on Monday after data showed US manufacturing contracted for a third month in May and tariff snarls meant suppliers took longer to deliver goods. Attention now turns to US factory order numbers on Tuesday, along with jobs figures due later in the week.
The US dollar got some respite last week, rising 0.3% after trade talks with the European Union got back on track and a US trade court blocked the bulk of Trump’s tariffs. An appeals court reinstated the duties a day later, and Trump’s administration said it had other avenues to implement them if it loses in court.
Oil prices, a key indicator of currency parity, ticked up on Tuesday supported by rising geopolitical tensions as Russia and Ukraine ramped up the war and Iran was set to reject a U.S. nuclear deal proposal that would be key to easing sanctions on the major oil producer.
Crude had gained nearly 3% on Monday after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, kept its July output hike at 411,000 barrels per day, the same as earlier months and less than some in the market had feared.
Brent crude futures gained 43 cents, or 0.7%, to $65.06 a barrel by 0807 GMT. US West Texas Intermediate crude was up 50 cents, or 0.8%, to $63.02.
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