- Rupee depreciated by 10 paisa against the US Dollar in interbank trading, closing at Rs280.71.
- Dollar's buying rate at Rs280.75 and selling rate at Rs282.25.
- Euro's price decreased by 14 paisa, closing at Rs319.17.
According to the Forex Association of Pakistan (FAP), the open market saw the dollar's buying rate at Rs280.75 and its selling rate at Rs282.25.
According to the State Bank of Pakistan (SBP), the Euro's price decreased by 14 paisa, closing at Rs319.17 compared to the previous day's closing of Rs319.31.
The Japanese yen increased by 01 paisa, closing at Rs1.97, while the British Pound saw a rise of 77 paisa, trading at Rs372.38 compared to the previous day's closing of Rs371.61.
The Emirates Dirham and the Saudi Riyal each increased by 03 paisa, closing at Rs 76.42 and Rs 74.81, respectively.
The United States Dollar (USD), the official currency of the United States, serves as a pillar of the world financial system. Its origin dates back to the Coinage Act of 1792, but its rise to global prominence gained momentum after World War I and solidified with the Bretton Woods Agreement of 1944.
Under this agreement, other leading currencies were tied to the US Dollar, which was itself tied to gold, making the dollar the major reserve currency. Although the direct gold peg was later discarded, the dollar's established status, along with the dominance of the US economy and financial markets, has helped maintain its preeminence in international finance.
The US Dollar plays a vital role in global trade as the world’s leading reserve currency. Central banks around the world hold large portions of their foreign exchange reserves in US Dollars, creating steady demand that sustains its value and liquidity. Additionally, most international transactions—especially those involving major commodities like oil and gold—are denominated and settled in US Dollars. This widespread use simplifies international trade by reducing the need for frequent currency exchange, lowering transaction costs, and increasing market efficiency.
Beyond serving as a means of exchange, the US Dollar also acts as a “safe haven” currency. During periods of economic uncertainty or geopolitical instability, investors choose dollar-denominated instruments for their relative safety, which boosts the dollar’s demand and value. The large and liquid financial markets of the United States further facilitate dollar-based transactions and investments, making the dollar essential to global finance. This combination of factors—its reserve currency status, widespread acceptance, safe-haven appeal, and deep financial markets—strengthens the US Dollar’s vital and enduring role in shaping and influencing international trade.
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