Rupee's Performance Against US Dollar Since 04 March 2025 The Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Thursday. At close, the local currency settled at 279.25, up by Re0.01 against the greenback. On Wednesday , the local unit closed at 279.26. Internationally, the Japanese yen teetered on the brink of its weakest level in two years in Asian morning trading on Thursday, struggling to find a footing against a resurgent dollar as the Bank of Japan held rates steady in the shadow of the Iran conflict. The yen was 0.1% firmer at 159.655 per US dollar, off its weakest levels in two years, as the BOJ kept its rate at 0.75% and maintained its assessment that the economy was recovering moderately. Earlier in the day, Japanese Finance Minister Satsuki Katayama said authorities are on heightened alert for currency market volatility, and recent movements have been driven partly by speculators. The Bank of Japan’s decision comes midway through a pivotal stretch of major central bank meetings, as traders hunt for clues on how policymakers will respond to the energy price shock. The dollar eased off a two-day high on Thursday as traders assessed the Fed’s decision to hold rates against the backdrop of accelerating US inflation amid a raging Middle East conflict and surging oil prices. The US dollar index, which measures the greenback’s strength against a basket of six currencies, edged down 0.1% to 100.07, near its highest levels over the last four months, as traders reined in bets that the Fed would cut interest rates later this year. Financial markets are almost fully pricing in a hold at the US central bank’s April 29 meeting, with expectations of further easing pushed out to 2027. Fed funds futures imply that the odds of a rate cut in December are little better than a coin toss, according to the CME Group’s FedWatch tool. Oil prices , a key indicator of currency parity, jumped on Thursday, with benchmark Brent rising to its highest in more than a week to more than $115 a barrel, after Iran attacked energy facilities across the Middle East following Israel’s strike on its South Pars gas field, a major escalation in the war. Brent futures were up $6.08, or 5.7%, at $113.46 a barrel by 0814 GMT, after climbing almost $8 to the highest since March 9 to a session high of $115.10. US West Texas Intermediate crude rose 57 cents, or 0.6%, to $96.89 a barrel, after earlier gaining almost $4 to trade at $100.02. WTI has been trading at its widest discount to Brent in 11 years due to releases from US strategic reserves and higher freight costs, while renewed attacks on Middle Eastern energy facilities boosted support for Brent.