The Pakistani rupee posted a marginal gain against the US dollar on Tuesday, appreciating by 0.02% in the inter-bank market.
At the close, the local currency settled at 281.02, up by Re0.05 from the previous day’s close of 281.07.
Despite the slight recovery, the US dollar struggled to regain ground as investors remained uncertain about the progress of the Sino-U.S. trade talks. Treasury Secretary Scott Bessent indicated that the responsibility for initiating negotiations rested with China, adding to the mixed signals about trade relations between the world’s two largest economies.
While President Donald Trump claimed progress and highlighted talks with Chinese President Xi Jinping, Beijing denied these assertions.
Oil prices, a significant factor influencing currency movements, fell on Tuesday amid lowered demand growth expectations due to the ongoing trade dispute. Brent crude futures dropped by 59 cents, or 0.9%, to $65.27 per barrel, while US West Texas Intermediate crude futures fell 49 cents, or 0.8%, to $61.56 a barrel.
PVM analyst Tamas Varga noted that the stalled trade negotiations between China and the US were once again raising concerns about economic and demand growth prospects.
According to a majority of economists in a Reuters poll, President Trump’s tariff strategy has created a high risk of a global economic recession in 2025, as China retaliates with its own tariffs, exacerbating the trade war between the top two oil-consuming nations.
