Globally, the Japanese yen strengthened while the US dollar remained stable as investors assessed the implications of US President Donald Trump’s new tariff proposals on the global economy and their potential impact on interest rates set by major central banks.

Geopolitical tensions were also highlighted after Trump labeled Ukrainian President Volodymyr Zelenskiy a “dictator” during discussions aimed at resolving the ongoing Russia-Ukraine conflict.

In cautious Asian trading, currency movements were generally modest, with the exception of the yen, which surged to a two-month high of 150.62 against the dollar. This increase was driven by a flight to safety amid concerns over the impact of US President Donald Trump’s tariffs, alongside expectations of further interest rate hikes by the Bank of Japan later this year.

The British pound, on the other hand, pulled back from its two-month peak and was last trading at $1.2594.

Meanwhile, the US dollar remained close to a one-week high at 107.15 against a basket of currencies.

Minutes from the Federal Open Market Committee’s latest policy meeting, released on Wednesday, indicated that Trump’s initial tariff proposals raised alarms among Federal Reserve officials regarding rising inflation. This has reinforced their cautious stance on potential rate cuts moving forward.

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Intraday update: Rupee gains in first trading session of the month

The local currency had closed at Rs279.47 on Wednesday.

Last month, the local currency showed a slight improvement against the greenback, appreciating by 0.07% in the inter-bank market during Wednesday’s opening trading hours.

The buying spree at the Pakistan Stock Exchange continued on Thursday, with the benchmark KSE-100 index surging by nearly 400 points. The index closed at 113,739.16, marking an increase of 396.72 points, or 0.35%.

Gold prices rose on Monday as the US dollar weakened, with investors awaiting further details on US President Donald Trump’s tariff plans, which could escalate global trade tensions.