In the inter-bank market on Thursday, the Pakistani rupee weakened against the US dollar, depreciating by 0.09% during the initial trading hours. By 10:15am, the rupee was trading at 280.42, marking a loss of Re0.26 against the greenback.

This follows a slight appreciation of the rupee in the previous week, where it gained Re0.10 or 0.03% to close at 280.16, compared to 280.26 from the week prior, according to data from the State Bank of Pakistan (SBP).

On the international front, the US dollar broadly declined, while the euro gained strength following President Donald Trump’s announcement of unexpected and aggressive tariffs against US trading partners.

This development jolted the markets, triggering a flight to safe-haven currencies such as the Japanese yen and Swiss franc.

The new tariff measures, which include a 10% baseline tariff on all imports to the United States and higher duties on key trading partners, are set to take effect on April 9 and target about 60 countries.

This escalation in trade tensions has raised concerns of a potential global economic slowdown as markets react to the uncertainty.

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Following the tariff announcement, global stocks fell sharply, prompting investors to seek refuge in safe-haven assets. The Australian dollar dropped 0.4% to $0.6274, while the New Zealand dollar fell 0.12% to $0.5738.

In contrast, the Japanese yen strengthened by nearly 1% to 147.99 per dollar, and the Swiss franc traded stronger at 0.87815 per dollar.

Additionally, the dollar index, which measures the performance of the US currency against six major rivals, recorded a drop to 103.13, its lowest point since mid-October.

Moreover, oil prices critical indicators of currency value dipped by as much as 3% following the tariff announcement, raising fears of a global trade war that could stifle economic growth and diminish fuel demand.

Brent crude futures were down $1.60, or 2.13%, to $73.35 a barrel, while US West Texas Intermediate crude futures declined by $1.62, or 2.26%, to $70.09 a barrel.