Rupee Extends Winning Streak, Records 9th Consecutive Gain Against US Dollar

August 20, 2025 | Karachi

The Pakistani rupee continued its upward trajectory on Wednesday, marking its ninth consecutive gain against the US dollar in the interbank market.

At market close, the local currency settled at 281.95 per dollar, appreciating by Re0.01 compared to Tuesday’s close of 281.96. Although marginal, this consistent strengthening reflects improved sentiment in the currency market.

Global Currency Developments

On the international front, the US dollar gained for a third straight session as investors awaited the outcome of the US Federal Reserve’s annual Jackson Hole symposium, where Fed Chair Jerome Powell’s remarks on Friday are expected to set the tone for future monetary policy.

The US dollar index, which tracks the greenback against six major currencies, inched up 0.1% to 98.438 — its highest since August 12. Over the first two trading days of this week, the index has already advanced 0.4%.

Meanwhile, the New Zealand dollar fell sharply, dropping as much as 0.9% to $0.5841 — its weakest level since April 14 — after the country’s central bank revealed it had considered a deeper rate cut.

Oil Market Impact

Oil prices, which play a significant role in determining currency parity for Pakistan, traded flat. Brent crude futures stood at $65.90 per barrel, up 11 cents, while US West Texas Intermediate (WTI) crude for September delivery closed at $62.40 per barrel, up 5 cents. The October contract, considered more active, traded at $61.90 per barrel, up 13 cents.

The oil market remains cautious as geopolitical developments surrounding the Russia-Ukraine conflict continue to impact global supply expectations. Earlier optimism over a potential peace deal had driven prices down more than 1% on Tuesday.

Market participants in Pakistan are closely monitoring both global oil trends and the Federal Reserve’s upcoming policy stance. With the rupee maintaining its resilience for nine sessions, traders suggest that any sharp movement in energy prices or Fed signals could set the tone for the currency’s direction in the coming weeks.