The Pakistani rupee registered a slight gain against the US dollar in the interbank market, appreciating 0.03% in early trading on Friday. By 10:45 AM, the currency stood at 278.88, marking an increase of Re0.09 against the greenback.

The Japanese yen was on track for its strongest January start since 2018, supported by expectations that the Bank of Japan (BOJ) will continue raising interest rates, while other global central banks may move towards easing policies.

The Mexican peso and Canadian dollar remained under pressure ahead of the February 1 deadline, when former US President Donald Trump had previously indicated plans to impose 25% tariffs on imports from both countries. The Canadian dollar hovered near a five-year low at C$1.4490, set for a weekly decline of 1%, while Mexico’s peso recovered slightly to 20.6849 per dollar but remained on course for its worst weekly performance since October, dropping 2%.

The US dollar index rose 0.1\% to 108.18, although it was set for a slight monthly decline of 0.3%. Meanwhile, Tokyo’s core inflation hit 2.5%, marking its fastest annual rise in nearly a year, reinforcing market expectations of further rate hikes by the BOJ.

Economic data from the United States showed slower economic growth in Q4, although consumer spending surged to its highest level in nearly two years.

Oil prices rose as investors evaluated the impact of Trump’s tariff threats on Mexico and Canada, the two largest crude exporters to the United States. Brent crude (March contract) gained 38 cents, trading at $77.25 per barrel, while the more active April contract climbed 34 cents to $76.23 per barrel. US WTI crude rose 49 cents to $73.22 per barrel.

For the week, Brent crude is set to decline 1.6%, while WTI has dropped 2%. However, for January, Brent crude has climbed 3.6%, marking its best monthly performance since June, while WTI has gained 2%.