Pakistani Rupee Makes Modest Gain Against US Dollar as Global Dollar Rally Pauses

April 19, 2025 – DailyForex.pk
The Pakistani rupee (PKR) posted a marginal gain against the US dollar (USD) in early interbank trading on Friday, amid a temporary global pause in the dollar’s rally and rising oil prices boosting sentiment for emerging market currencies.

At 9:53 AM, the PKR was trading at 280.45, appreciating by Re0.17 or 0.06% from the previous session’s closing rate of 280.62.

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🌍 Global USD Trends: Consolidation After ECB Cut and Tariff Volatility

The US dollar showed resilience on Thursday following recent losses, as its weakness against major currencies appeared to stall temporarily. The euro slipped after the European Central Bank (ECB) delivered its seventh rate cut this year, amplifying short-term demand for the greenback.

Despite the rebound, analysts maintain a bearish medium-term outlook for the US dollar.

“We’re in a short-term consolidation phase after a strong G10 currency run,” said Eric Theoret, FX strategist at Scotiabank. “Long-term, we still expect the dollar to weaken.”

Traders are now closely watching ongoing US trade negotiations for clues about future tariff direction, which could influence investor flows and global currency stability.

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🛢 Oil Prices Surge on US Sanctions, Supporting Emerging Markets

Oil prices, a key driver of exchange rate movements in oil-importing economies like Pakistan, rose sharply on Thursday following new US sanctions targeting Iranian exports. This move has intensified supply concerns and sent prices to two-week highs.

• Brent crude: up $1.74 (+2.64%) at $67.59 per barrel
• WTI crude: up $1.80 (+2.88%) at $64.27 per barrel

This marks the first weekly rise in oil prices in three weeks, reinforcing support for commodity-linked and emerging market currencies.

The sanctions, which include actions against a China-based “teapot” oil refinery, add pressure on Iran amid ongoing nuclear deal negotiations and could influence global trade dynamics going forward.

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📌 Conclusion: Rupee Gains Slightly as Oil Strengthens and Dollar Pauses

With oil prices surging and the dollar showing signs of consolidation, the Pakistani rupee managed a slight recovery in the interbank market. However, ongoing global trade tensions, tariff developments, and oil-related sanctions could drive increased volatility in the USD to PKR exchange rate in the coming sessions.

📊 For daily USD to PKR updates, forex market news, and currency forecasts, visit www.dailyforex.pk — Pakistan’s trusted source for global financial insights.