Pakistani Rupee Exchange Rate: Marginal Decline as USD Gains
- Abeera Marium Siddiqui
- February 4, 2025
- 4:47 pm
- 32
- Trending
The Pakistani Rupee exchange rate showed a slight decline against the US Dollar in the inter-bank market. It fell by 0.03%, closing at Rs279.04, with a loss of Re0.09 from the previous close. Last week, the rupee dropped 0.07% to settle at Rs278.95.
In the open market, the rupee had mixed outcomes. It gained 1 paisa for buying, ending at Rs278.75. However, it lost 5 paise for selling, closing at Rs280.88. Major currencies like the Euro (EUR) and British Pound (GBP) strengthened further, creating more challenges for the rupee.
Global Currency Trends and Rising Oil Prices
The US Dollar surged to new highs amid global trade tensions. Recent tariffs on Canada, Mexico, and China created disruptions in global markets. As a result, the offshore yuan dropped to a record low of 7.3765 against the dollar. Other currencies, including the euro and Swiss franc, also weakened as the dollar continued to dominate.
Oil prices, a key factor influencing currency trends, added to the rupee’s struggles. West Texas Intermediate (WTI) crude reached $75.18 per barrel, while Brent crude rose to $77.34 per barrel. These rising prices signal growing uncertainty, especially for import-reliant economies like Pakistan.
Economic Impacts: Rising Costs and Market Pressure
The weakening rupee is increasing the cost of imports, especially oil, which drives inflation higher. Essential goods are becoming more expensive, adding pressure to household budgets.
The Pakistan Stock Exchange reflected these economic challenges. The KSE-100 index dropped by 276 points to close at 112,468.04. Trading activity, however, remained strong, with over 102 million shares traded at a total value of Rs8.25 billion.
With oil prices climbing and the US Dollar staying strong, the rupee may face further depreciation. Pakistan needs targeted measures to stabilize the currency and regain investor confidence.
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