The Pakistani rupee saw a slight uptick against the US dollar, rising by 0.06% in the inter-bank market on Thursday, reports the Recorder. Closing at 278.30, the local currency gained Re0.17 versus the greenback, according to data from the State Bank of Pakistan (SBP).
This uptrend contrasts with Wednesday’s closing where the rupee had dipped to 278.47, a decrease of Re0.08. Over recent months, the rupee has maintained relative stability, a trend coinciding with Pakistan’s interest in securing another IMF bailout program post the conclusion of its previous $3-billion Stand-By Arrangement (SBA).
Negotiations with the IMF, led by Nathan Porter, have commenced, though specifics remain pending. The new IMF initiative is viewed as critical in preserving currency stability.
Globally, the US dollar displayed strength, nearing a one-week high post the Federal Reserve meeting where discussions on potential interest rate hikes surfaced. The dollar index, which gauges its performance against major currencies like the euro, pound, and yen, held steady at 104.89, following a 0.28% increase.
Oil markets reacted to the Fed’s deliberations, with prices experiencing a downturn for the fourth consecutive session. Brent crude futures slid by 20 cents to $81.70 a barrel, while US West Texas Intermediate crude (WTI) futures dropped by 29 cents to $77.28 a barrel.
In local markets, the Pakistani rupee experienced minor fluctuations. In the open market, the PKR saw a slight depreciation against the USD, closing at 277.05 for buying and 279.55 for selling. However, against other currencies like the Euro, UAE Dirham, and Saudi Riyal, the rupee exhibited mixed movements.
These developments underscore the nuanced dynamics shaping currency markets globally and domestically.