August 4, 2025

The Pakistani rupee continued to strengthen against the US dollar during Monday’s early inter-bank trading, gaining Re0.25 or 0.09% to hover around the 282.47 mark by 10:15am. This builds on last week’s upward momentum, where the rupee appreciated by Re0.73 against the greenback, closing at 282.72, according to the State Bank of Pakistan (SBP).

The rupee’s performance comes against the backdrop of a turbulent global currency environment. A weaker US dollar followed a disappointing US jobs report and the shock dismissal of Bureau of Labor Statistics Commissioner Erika McEntarfer by President Donald Trump, who accused her of falsifying employment data.

In addition, the sudden resignation of Fed Governor Adriana Kugler has stirred further uncertainty, with expectations rising for imminent interest rate cuts by the Federal Reserve.

Globally, the dollar dropped more than 2% against the yen and around 1.5% against the euro on Friday, before recovering slightly. Meanwhile, oil prices — a critical external factor for the rupee — extended declines as OPEC+ announced further production hikes amid concerns of slowing US economic growth.

Analysts believe the rupee's resilience is aided by reduced external pressure, improved remittance inflows, and central bank interventions supporting market stability.