The Pakistani rupee recorded a slight gain against the US dollar in the inter-bank market, appreciating by 0.03%. At 10:30 am, the rupee was observed at 278.22 against the greenback.
This follows a marginal decline on Tuesday, as reported by the State Bank of Pakistan (SBP), with the rupee settling at 278.29 against the US dollar.
In a significant update, the International Monetary Fund (IMF) has projected Pakistan’s GDP growth rate for the current fiscal year at 2%, compared to -0.2% in the fiscal year 2023. The IMF also forecasts a decrease in inflation from 29.2% to 24.8%, along with a decline in unemployment from 8.5% to 8%.
On the global front, the US dollar maintained stability on Wednesday, with the yen staying near 34-year lows following remarks from Federal Reserve officials, including Chair Jerome Powell, indicating that US interest rates are expected to remain higher for an extended period.
Key figures at the US central bank, including Powell, refrained from providing guidance on potential interest rate cuts, emphasizing the need for continued monetary policy restraint, thereby diminishing hopes for significant easing this year.
These statements come amidst recent data suggesting the robustness of the US economy alongside persistent inflation.
Meanwhile, oil prices experienced further declines in early trading on Wednesday, driven by concerns over global demand due to weakened economic momentum in China and anticipated increases in US commercial stockpiles, outweighing supply fears stemming from heightened tensions in the Middle East.
Brent futures for June slipped by 56 cents, or 0.62%, to $89.46 a barrel by 0337 GMT, while US crude futures for May fell by 63 cents, or 0.74%, to $84.73 a barrel.
Despite geopolitical tensions, economic headwinds have subdued investor sentiment, impacting oil prices. Attention remains on Israel’s potential response to Iran’s recent attack over the weekend.
