Introduction

In a notable resurgence, the Pakistani rupee continued to strengthen in the inter-bank market on Friday, August 29, 2025, marking its 16th consecutive day of appreciation against the US dollar .

By day’s end, the exchange rate stood at PKR 281.77, reflecting a modest gain of Re 0.03 compared to Thursday’s closing rate of PKR 281.80.

On a global scale, the US dollar showed signs of weakness, on track for a 2% decline in August against major currencies. This downturn stems from increasing expectations of a Federal Reserve interest rate cut, coupled with growing concerns over political interference in the central bank. Recent attempts by President Donald Trump to exert influence—such as seeking the dismissal of Fed Governor Lisa Cook, who has responded with a lawsuit asserting her protection—have added to the dollar’s volatility.

Key global currency movements included:

The euro trading steadily at $1.1675, projected to gain 2% this month.
The British pound at $1.3509.
The Japanese yen at 146.97 per USD.
The Australian dollar holding at $0.6533, also set for a roughly 1.6% monthly gain .

Meanwhile, the dollar index—a gauge against six major currencies—stood at 97.917, heading for a 2% drop in August and nearing a 10% decline for the year, as investor confidence wanes amid unpredictable US trade and monetary policy.

Oil prices dipped on Friday yet remained on track for weekly gains, influenced by uncertainty around Russian supply and a slowdown in US seasonal demand. Brent crude for October delivery fell to $68.22, while the November contract slipped to $67.79. West Texas Intermediate (WTI) edged down to $64.40. Despite these daily dips, Brent rose 0.7% and WTI climbed about 1.2% over the week.

Open-market activity also favored the rupee:

For USD: PKR 282.77 (buying) and PKR 283.60 (selling), gaining 9–10 paise Business Recorder.
Against the Euro: The rupee weakened by 22–24 paise, closing at PKR 328.65 (buying) and PKR 330.64 (selling).
Against the UAE Dirham and Saudi Riyal: Holding steady on buying with minor selling gains—5 paise—for each