KARACHI: The Pakistani rupee continued its slide against the US dollar on Thursday, marking its fifth straight session of depreciation. In the inter-bank market, the local currency closed at 281.52 against the greenback, down by Re0.05 from the previous day’s closing rate of 281.47.
The rupee’s decline was modest, posting a loss of 0.02% as traders reacted to global market dynamics, including the strengthening of the US dollar internationally.
In global markets, the US dollar held steady against the euro following a notable rise the day before. On Wednesday, the dollar had gained 0.56% after the Federal Reserve warned of growing risks to the economy, including inflation and unemployment concerns. The dollar also received support from easing trade tensions between the US and China, with investors anticipating a breakthrough in upcoming trade talks.
Meanwhile, oil prices remained stable, further supporting the US dollar, which is closely tied to energy markets. Brent crude futures rose by 0.7% to $61.55 per barrel, while US West Texas Intermediate crude gained 0.8% to $58.56 per barrel.
In the open market, the Pakistani rupee lost 9 paise for buying and 11 paise for selling against the US dollar, closing at 281.50 and 283.24, respectively. Other currencies also saw slight fluctuations, with the rupee gaining against the euro but weakening against the UAE dirham and Saudi riyal.
Market analysts suggest that the rupee's ongoing depreciation is driven by external factors, including global economic uncertainties and domestic trade imbalances. The outlook for the currency remains tied to international developments, including upcoming trade talks and Federal Reserve decisions on interest rates.
