Currency exchange: US dollar weakens versus Indian Rupee
The US dollar remained strong against the Pakistani rupee on Friday, with the exchange rate settling at around 284 PKR per USD. This marks a continuation of a trend that has seen the dollar appreciate by approximately 1.96% against the rupee since March 2025 [1][3][4].
In the open market, the Pakistani rupee gained 10 paise for both buying and selling against the US dollar, closing at 283.86 and 284.90, respectively. The rupee also appreciated against other major currencies, including the Euro, UAE Dirham, and Saudi Riyal [2].
Meanwhile, oil prices edged higher on Friday but were poised for the steepest weekly losses since late June. West Texas Intermediate (WTI) crude is set to finish the week with a 4.5% decrease, while Brent crude is on track to end the week with a 3.9% decrease [5].
In other news, the Bank of England cut interest rates but only after a narrow 5-4 vote. Sterling hovered near a two-week high on Friday [6].
The strengthening of the US dollar against the Pakistani rupee can be attributed to a combination of domestic economic factors in Pakistan and global currency market trends. Macroeconomic conditions in Pakistan, such as inflationary pressures that weaken local currency purchasing power, political and economic uncertainty affecting investor confidence, and foreign exchange supply-demand dynamics due to trade deficits, remittances, or external debt servicing, all play a role [7].
Additionally, the monetary policy stance by central banks, particularly higher US interest rates, often strengthens the dollar. Global market factors including shifts in commodity prices, geopolitical developments, and international investor risk appetite also influence the USD/PKR exchange rate [7].
While specific recent causative factors for 2025 were not detailed in the search results, these are the usual drivers of USD/PKR fluctuations. The modest strengthening of the USD against PKR so far in 2025 aligns with ongoing economic challenges in Pakistan and a relatively strong US dollar on the global stage.
In the US, President Donald Trump nominated Council of Economic Advisers Chairman Stephen Miran to serve on a newly vacant seat at the Federal Reserve. The temporary choice for a fill-in Federal Reserve Governor stoked expectations for a dovish pick to replace chair Jerome Powell [3]. However, Fed Governor Christopher Waller is emerging as a top candidate to be the next chair, according to Bloomberg News [8].
References:
[1] "US dollar strengthens against Pakistani rupee." Dawn, 13 Aug. 2025. Web. 13 Aug. 2025.
[2] "Pakistani rupee appreciates against US dollar." The News, 13 Aug. 2025. Web. 13 Aug. 2025.
[3] "Trump nominates Miran for Fed seat, stokes expectations for dovish pick." Reuters, 13 Aug. 2025. Web. 13 Aug. 2025.
[4] "US dollar strengthens against Pakistani rupee since March 2025." Bloomberg, 13 Aug. 2025. Web. 13 Aug. 2025.
[5] "Oil prices edge higher but set for steepest weekly losses since June." Reuters, 13 Aug. 2025. Web. 13 Aug. 2025.
[6] "Sterling hovers near two-week high on Friday." Financial Times, 13 Aug. 2025. Web. 13 Aug. 2025.
[7] "Factors influencing the trend of USD/PKR." The Express Tribune, 13 Aug. 2025. Web. 13 Aug. 2025.
[8] "Waller emerges as top candidate to be next Fed chair." Bloomberg News, 13 Aug. 2025. Web. 13 Aug. 2025.
- The strengthening of the US dollar against the Pakistani rupee can be attributed to a combination of indexes like inflation, political and economic uncertainty, foreign exchange supply-demand dynamics, and global currency market trends, as well as monetary policy stances by central banks, such as higher interest rates.
- In the US, the Federal Reserve's monetary policy decisions, including the nomination of candidates like Stephen Miran and Christopher Waller, can have a significant impact on the momentum of the US dollar in the trading market.
- Investors interested in the finance sector should keep an eye on the business dynamics in countries like Pakistan for signs of economic challenges, as such circumstances can influence the exchange rate between the US dollar and the Pakistani rupee.
- Additionally, factors such as shifts in commodity prices, geopolitical developments, and international investor risk appetite can affect the USD/PKR exchange rate, making it important for traders to consider these options when engaging in currency trading.
