The Pakistani rupee remained relatively stable in the inter-bank market, showing a minor depreciation of 0.01% against the US dollar during Wednesday’s opening hours of trading. At 10:50 am, the currency was trading at 278.43, marking a loss of Re0.03 compared to the previous day’s close of 278.40.
In recent weeks, the Pakistani rupee has maintained a range of 277-279 against the dollar amidst ongoing efforts by Pakistan to secure a substantial International Monetary Fund (IMF) bailout package. These efforts are crucial as Pakistan navigates economic challenges and seeks financial stability.
Internationally, the US dollar strengthened after Federal Reserve Chair Jerome Powell’s cautious remarks on interest rate cuts during his testimony to Congress. Powell emphasized that a rate cut would only be considered with greater confidence in achieving the 2% inflation target, despite acknowledging risks from a cooling job market.
The dollar index, which measures the US dollar against major currencies, including the euro and yen, remained stable at 105.11 early in the Asian trading session. This followed a slight increase of 0.1% on Tuesday, reflecting market sentiment influenced by Powell’s statements.
Oil prices, another key factor influencing currency markets, rebounded after a recent decline. This recovery was driven by a report indicating a decrease in US crude and fuel inventories, suggesting stable demand. Brent futures rose to $84.87 a barrel, while US West Texas Intermediate (WTI) crude climbed to $81.67 a barrel.
These developments in global markets continue to impact currency parity and economic policies worldwide, including Pakistan’s efforts to stabilize its currency amid broader economic challenges and negotiations with international financial institutions.
