US currency weakens, providing strength to Indian Rupee
US Dollar Steady, Pakistani Rupee Appreciates Against Multiple Currencies
The US dollar held steady on Tuesday, with the US Dollar Index remaining at 98.497 as of 0046 GMT. Meanwhile, the Pakistani rupee showed signs of strength, appreciating against multiple currencies in the open market.
Against the UAE Dirham, the Pakistani rupee remained unchanged for buying at 77.28 and gained 5 paise for selling, closing at 77.55. The rupee also appreciated against the Saudi Riyal, with a 3 paise gain for selling, closing at 75.53.
In the open market, the Pakistani rupee closed at 283.80 for buying against the US dollar, 328.95 against Euro, 77.28 against UAE Dirham, and 75.53 against Saudi Riyal. For selling in the open market, the Pakistani rupee closed at 284.90 against the US dollar, 331.10 against Euro, 77.55 against UAE Dirham, and 75.85 against Saudi Riyal.
This recent appreciation of the Pakistani rupee comes after a period of volatility against the US dollar. From March 2025 to August 21, 2025, the Pakistani rupee depreciated overall against the US dollar but showed intermittent periods of appreciation.
During this period, the rupee depreciated at the start of 2025 and saw fluctuations month-to-month, with troughs near 269 and peaks near 283 PKR/USD. The rupee’s depreciation trend has softened by August 2025 with some short-term gains recorded.
The US dollar's strength was influenced by global monetary policy expectations, such as the US Federal Reserve's decisions, impacting USD demand internationally. Local economic factors in Pakistan, including market interventions and economic conditions, also contributed to the rupee's volatility.
In other news, U.S. West Texas Intermediate crude futures eased by 45 cents, or 0.7%, to $63.51, while Brent crude futures lost 36 cents, or 0.54%, to $66.27 a barrel. The US President Donald Trump extended a tariff truce with China to November 10, and Fed officials have sounded increasingly uneasy about the labour market, signalling a possible rate cut as soon as September. The US President's pick to replace a Fed governor is dovish-leaning, leading traders to increase easing bets.
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