The Pakistani rupee made slight gains against the US dollar on Tuesday. It appreciated by 0.01% in the inter-bank market. At close, the rupee settled at 281.32, up by Re0.03.
On Monday, the currency had closed at 281.35. This upward move came as the US dollar weakened globally. Investors grew cautious ahead of a possible US government shutdown.
Global Market Concerns
The shutdown threat could delay key economic data, including the US jobs report. This report is vital for the Federal Reserve when setting interest rate policy. However, political gridlock in Washington has slowed progress on a temporary funding deal.
Federal Reserve Bank of New York President John Williams noted labor market weakness. He explained that this concern influenced his support for a recent rate cut.
Traders now expect further rate easing. Markets have priced in 42 basis points of cuts by December. By 2026, total easing could reach 104 basis points, slightly lower than earlier forecasts. As a result, the dollar may remain under pressure.
Oil Prices Add Pressure
Oil prices also dipped, influencing global currency movements. Brent crude fell by 1.2% to $67.13 a barrel. US West Texas Intermediate slid to $62.68, also down 1.2%.
These declines extended Monday’s sharp falls. Both Brent and WTI dropped more than 3% that day. Analysts linked the decline to OPEC+ plans for higher supply and renewed Iraqi exports.
For Pakistan, lower oil prices can ease import bills. However, ongoing uncertainty in global markets means the rupee’s stability remains fragile.
