Rupee registers gain against US dollar

The Pakistani rupee exhibited a slight upward trend against the US dollar in the interbank market on Friday, closing the day at 277.00, marking a gain of Re0.01. The rupee had settled at 277.01 on Thursday. Internationally, the euro faced a fifth consecutive weekly decline on Friday but signs emerged that the downtrend was weakening, thanks to a stabilising French debt market and a slight dip in US yields.

The euro had plummeted to a 17-month low of $1.1161 on Monday due to concerns over France's massive debt and the challenging political landscape for budget cuts. However, it has since rebounded and is now trading at $1.1211, marking a 0.3% decrease this week and a 3% decline over the past five weeks against the US dollar. The euro against the British pound also saw a 0.3% drop this week, hovering near a 16-month low of 84.74 pence.

The euro against the Swiss franc steadied around 0.9324 francs per euro after experiencing its most significant weekly drop in 17 months. Meanwhile, France's far-right presidential candidate, Marine Le Pen, unveiled plans to reduce the budget deficit, which markets viewed favorably as Jean-Luc Melenchon, her hard-left rival, had called for the central bank to cancel government debts.

In other developments, the US dollar showed minor gains, and its momentum waned as US yields approached their most significant weekly drop in nearly three months, with the market rallying strongly overnight. Oil prices, a crucial factor in currency valuation, experienced a decline on Friday due to eased Middle East supply concerns following US President Donald Trump's statement that the US would not attack Iran before the upcoming elections, despite ongoing talks aimed at ending the war that has impacted global energy markets.

Brent crude futures dropped by $1.37, or 1.3%, to $102.91 a barrel. Meanwhile, US West Texas Intermediate (WTI) crude futures fell by $1.09, or 1.2%, to $90.40.