PKR gains 11 paisa against US dollar in intraday trade

KARACHI: The Pakistani rupee (PKR) recorded a slight gain against the US dollar during early trade on Tuesday, as calmer global markets and hints of easing US-China tensions lifted sentiment.

The PKR appreciated by 0.04 percent in the interbank market, rising 11 paisa to trade around Rs281.05 against the greenback in morning dealings. A day earlier, the rupee had settled at Rs281.16 per dollar, according to the State Bank of Pakistan (SBP).

Cautious optimism in currency trade

Globally, the dollar held firm after a volatile few days. Markets steadied on Tuesday following a sharp selloff on Friday when US President Donald Trump announced additional 100 percent tariffs on Chinese exports to the US, only to soften his tone over the weekend. His willingness to meet Chinese President Xi Jinping in South Korea later this month helped restore some calm.

US Treasury Secretary Scott Bessent confirmed that Trump remained committed to the meeting, raising hopes of a thaw between the two economic giants after weeks of escalating trade tensions.

Rupee shows resilience amid uncertainty

In the previous session, the rupee had shown mild stability, closing almost flat at Rs281.16. During Monday’s trading, it moved within a narrow band, touching an intraday high of Rs281.80 and a low of Rs282.20.

So far in the ongoing fiscal year, the PKR has appreciated by Rs2.60, or 0.93 percent, against the dollar. However, from the start of the calendar year, it remains weaker by Rs2.61, reflecting the ongoing strain on emerging market currencies facing global headwinds.

The rupee’s performance against other major currencies was mixed. It strengthened slightly against Gulf currencies, gaining 0.25 paisa to reach Rs74.96 against the Saudi riyal and 0.15 paisa to Rs76.55 against the UAE dirham. It also improved by 4.09 paisa against the Chinese yuan, closing at Rs39.42.

However, it lost ground against several European currencies. The PKR slipped 49 paisa against the euro to Rs326.16, and fell 70 paisa to Rs374.88 against the British pound. It also weakened against the Swiss franc and the Japanese yen.

In the open market, exchange companies quoted the American currency at Rs281.50 for buying and Rs282.25 for selling, reflecting a steady but watchful sentiment among traders.

Gold surges to new high

Meanwhile, gold continued its dazzling rally in the international market, hitting yet another record high above $4,100 per ounce.

Spot gold climbed 1.3 percent to $4,162.31 by 0341 GMT, while US gold futures for December delivery were up 0.9 percent at $4,171. Analysts said growing expectations of US Federal Reserve rate cuts, combined with renewed US-China trade tensions, were driving investors towards safe-haven assets.

The precious metal has surged nearly 58 percent so far this year, marking its first-ever breach of the $4,100 level on Monday.

Read next: Aurangzeb discusses reform progress with IMF, WB during Washington meetings

Web Desk