Rupee continues to gain against US dollar
The Pakistani rupee maintained its upward trajectory against the US dollar, appreciating 0.04% during trading in the inter-bank market on Wednesday.
At close, the currency settled at 282.95, a gain of Re0.1.
On Tuesday, the currency settled at 283.05.
Pakistan's crackdown on black market dollar trading has strengthened the rupee, but traders say under-the-counter deals have swiftly shifted to smartphones and home deliveries instead.
Many unlicensed exchange shops have been shut since July 22, when the military spy agency summoned representatives of the sector to explain the US dollar's rising cost in the open market. Soon after, raids were carried out by the Federal Investigation Agency, which tackles financial crime and smuggling.
Since the crackdown began, the rupee has rebounded from a sharp fall against the dollar earlier in July.
Internationally, the euro steadied near its lowest in a month on Wednesday, nursing steep losses this week as investors counted the cost of the US-EU trade pact and looked ahead to policy meetings from the Federal Reserve and the Bank of Japan.
US and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm.
No major breakthroughs were announced, and US officials said it was up to President Donald Trump to decide whether to extend a truce that expires on August 12.
The euro was 0.12% higher at $1.1558 in early trading after dropping for the first two days of the week and hitting a one-month low of $1.15185 on Tuesday.
The single currency has benefited this year from the dollar losing its lustre due to Trump's erratic trade policies, prompting investors to look for alternatives.
The Japanese yen firmed a bit to 148.20 per dollar.
That left the dollar index, which measures the US currency against six others, at 98.815, hovering near a one-month high.
The index is set to record its first month of gains this year.
Oil prices, a key indicator of currency parity, ticked up in early trading on Wednesday after rising more than 3% in the previous session as potential supply shortages came into focus after US President Donald Trump gave Moscow an abbreviated deadline toward ending the war in Ukraine.
Brent crude futures rose 14 cents, or 0.19%, to $72.65 a barrel by 0048 GMT while US West Texas Intermediate crude climbed 2 cents, or 0.03%, to $69.23 a barrel.
Both contracts had settled at their highest since June 20 on Tuesday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
an hour ago
- Express Tribune
India's double game with US
Listen to article At the turn of the century, it became abundantly clear that China was on its way to dethrone the US as the world's sole superpower. No superpower would let its adversary take its place easily. The US has long portrayed itself as a leader of the "free world" and considers the rise of China as a threat to the "rule based order". The US and its allies continue to advance this narrative that China, as a superpower, would be a disaster for the "free world". In order to contain China, the US decided to cozy up with India. For so long India maintained a non-aligned posture but leaned toward the Soviet Union. The US-India ties remained lukewarm. Relations between the two countries soured after India conducted nuclear tests in 1998, prompting US sanctions. However, in the early 2000s a strategic rethinking began in Washington. With China's rise looming large, the US saw India as a natural democratic counterweight in Asia. The big reset happened during President Bush's second term. His administration made a bold bet, integrating India into the global nuclear order despite its non-signatory status regarding NPT. The landmark US-India Civil Nuclear Deal in 2008 became the cornerstone of the new partnership. The US believed a strong India could help balance China's growing influence in the Indo-Pacific region. There was bipartisan consensus in the US about deepening ties with India. After the Bush administration, Democrat leader President Barack Obama continued to pursue strategic partnership. In fact, the relationship between the US and India was taken to the next level. A number of agreements, signed between the two sides over the next two decades, left no ambiguity that India had finally abandoned its non-aligned posture. Some of the agreements include 2016 Logistics Exchange Memorandum of Agreement (enabling mutual use of military bases for refueling and logistics); 2018 Communications Compatibility and Security Agreement (allowing India to access encrypted US military communication equipment); and 2020 Basic Exchange and Cooperation Agreement (allowing shared geospatial intelligence and satellite data for defense targeting). India, which for long procured military hardware from Russia, began to buy defence equipment from the US, like Apache helicopters, P-81 surveillance aircraft, C-130/C 17 transport planes and MH-60R naval choppers. The current US Secretary of State Marco Rubio a few years ago introduced a bill in the Congress, seeking a status for India similar to the one being enjoyed by Israel. The sole purpose of the US warming up to India was to make sure India's support of US endeavours to contain China. But despite the deepening ties, US policymakers and analysts are increasingly disillusioned with India on several fronts. While India continued to take advantage of its strategic partnership with the US, it also maintained close ties with Russia. But the return of President Trump to the White House changed everything. Trump is no longer ready to tolerate India's pursuit of strategic autonomy. Rubio admitted that Indian ties with Russia were a source of "irritation" in the relationship. India continues to buy discounted oil and military hardware from Russia. The Trump Administration insists that India is funding Russia's war against Ukraine through these purchases. India is part of Quad, but resists any formal military alliance or joint patrolling. No appetite to take a strong anti-China stance that would resemble US expectations. The four-day military conflict in May between Pakistan and India also changed the equation. Pakistan's response to the Indian missile strikes shook the western world and the US. There were murmurs in Washington and other western capitals about the Indian military capabilities after its defeat at the hands of Pakistan. But above all, there is a growing realisation in Washington that India is playing a double game — taking full advantage from the US but not ready to align its strategic goals with Washington. India may remain an important player for the US but the relationship may never be the same again.
Express Tribune
3 hours ago
- Express Tribune
Trump aide accuses India of funding Russia's war through oil purchases
Russian President Vladimir Putin and Indian Prime Minister Narendra Modi attend a concert before an informal dinner on the sidelines of the BRICS Summit in Kazan, Russia October 22, 2024. PHOTO: REUTERS Listen to article A top aide to President Donald Trump on Sunday accused India of effectively financing Russia's war in Ukraine by purchasing oil from Moscow, after the US leader escalated pressure on New Delhi to stop buying Russian oil. 'What he (Trump) said very clearly is that it is not acceptable for India to continue financing this war by purchasing the oil from Russia,' said Stephen Miller, deputy chief of staff at the White House and one of Trump's most influential aides. US White House Deputy Chief of Staff Stephen Miller speaks to reporters at the White House in Washington, DC, US, April 18, 2025. Photo: Reuters Miller's criticism was some of the strongest yet by the Trump administration about one of the United States' major partners in the Indo-Pacific. Read More: India will continue to buy Russian oil, govt sources say 'People will be shocked to learn that India is basically tied with China in purchasing Russian oil. That's an astonishing fact,' Miller said on Fox News' 'Sunday Morning Futures.' The Indian Embassy in Washington did not immediately respond to a request for comment. Indian government sources told Reuters on Saturday that New Delhi will keep purchasing oil from Moscow despite US threats. A 25% tariff on Indian products went into effect on Friday as a result of its purchase of military equipment and energy from Russia. Trump has also threatened 100% tariffs on US imports from countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Miller tempered his criticism by noting Trump's relationship with Indian Prime Minister Narendra Modi, which he described as 'tremendous.'
Business Recorder
4 hours ago
- Business Recorder
US trade advisor says Trump tariff rates unlikely to change
WASHINGTON: New US tariff rates are 'pretty much set' with little immediate room for negotiation, Donald Trump's trade advisor said in remarks aired Sunday, also defending the president's politically driven levies against Brazil. Trump, who has wielded tariffs as a tool of American economic might, has set tariff rates for dozens of economies including the European Union at between 10 and 41 percent come August 7, his new hard deadline for the duties. In a pre-taped interview broadcast Sunday on CBS's 'Face the Nation,' US Trade Representative Jamieson Greer said 'the coming days' are not likely to see changes in the tariff rates. 'A lot of these are set rates pursuant to deals. Some of these deals are announced, some are not, others depend on the level of the trade deficit or surplus we may have with the country,' Greer said. Trump stakes reputation as dealmaker with tariff policy 'These tariff rates are pretty much set.' Undoubtedly some trade ministers 'want to talk more and see how they can work in a different way with the United States,' he added. But 'we're seeing truly the contours of the president's tariff plan right now with these rates.' Last Thursday, the former real estate developer announced hiked tariff rates on dozens of US trade partners. They will kick in on August 7 instead of August 1, which had previously been touted as a hard deadline. Among the countries facing steep new levies is Brazil. South America's largest economy is being hit with 50 percent tariffs on exports to the United States – albeit with significant exemptions for key products such as aircraft and orange juice. Trump has openly admitted he is punishing Brazil for prosecuting his political ally Jair Bolsonaro, the ex-president accused of plotting a coup in a bid to cling to power. The US president has described the case as a 'witch hunt.' Greer said it was not unusual for Trump to use tariff tools for geopolitical purposes. 'The president has seen in Brazil, like he's seen in other countries, a misuse of law, a misuse of democracy,' Greer told CBS. 'It is normal to use these tools for geopolitical issues.' Trump was 'elected to assess the foreign affairs situation… and take appropriate action,' he added. Meanwhile White House economic advisor Kevin Hassett said that while talks are expected to continue over the next week with some US trade partners, he concurred with Greer's tariffs assessment in that the bulk of the rates 'are more or less locked in.' Asked by the host of NBC's Sunday talk show 'Meet the Press with Kristen Welker' if Trump could change tariff rates should financial markets react negatively, Hassett said: 'I would rule it out, because these are the final deals.' Legal challenges have been filed against some of Trump's tariffs arguing he overstepped his authority. An appeals court panel on Thursday appeared skeptical of the government's arguments, though the case may be ultimately decided at the Supreme Court.
