The rupee showed minor stability against the dollar during the opening hours of trading on Monday, appreciating by 0.01%.

As of 10am, the rupee was valued at 279.93, reflecting a gain of Re0.04 against the greenback.

In the previous week, the rupee experienced a gradual decline, losing Re0.30 or 0.11% in the inter-bank market. It closed at 279.97, compared to 279.67 the week before, according to data from the State Bank of Pakistan.

The US dollar started the week on a weak note after facing significant losses last week, attributed to potential weaknesses in the US labor market and increasing concerns over a global trade war. This environment prompted investors to seek safe-haven assets, bolstering the yen and the Swiss franc.

Amid ongoing trade tensions, US President Donald Trump imposed tariffs on major trading partners but postponed some implementations for a month due to fears of a slowing US economy.

In currency futures markets, net long dollar positions were reduced to $15.3 billion from a nine-year high of $35.2 billion in late January.

As a result, the US dollar index, which measures the currency against six others, was at 103.59 on Monday, remaining close to a four-month low reached last week. The dollar fell over 3% against major rivals last week, marking its weakest weekly performance since November 2022, as concerns about tariffs and their economic impact mounted.

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Pakistani rupee sees slight increase against US dollar in inter-bank market

Rupee sees minor gain of 0.01% against dollar in early trading

Rupee strengthens against US Dollar in intra-day trading

Adding to investor unease, Trump, in a recent Fox News interview, refrained from predicting whether the US might face a recession, further fueling stock market concerns linked to his tariff actions on Mexico, Canada, and China.

In related news, oil prices, which significantly influence currency parity, dropped on Monday due to worries about the implications of US import tariffs on global economic growth and fuel demand, coupled with rising output from OPEC+ producers.