Tuesday’s inter-bank trading, the Pakistani rupee exhibited strength, appreciating by 0.17% against the US dollar. At 10:10 am, the rupee reached 282.73, marking a gain of Re0.48.
In the preceding trading session on Monday, the rupee experienced a slight increase, settling at 283.21 against the US dollar. Concurrently, recent data from the Economic Affairs Division (EAD) revealed that Pakistan borrowed $4.285 billion from multiple financing sources in the first five months (July-November) of the fiscal year 2023-24, compared to $5.114 billion borrowed during the same period in 2022-23.
Internationally, the US dollar dipped 0.3% against the yen, remaining close to a four-month high of 140.95 reached last week. Additionally, the greenback maintained near five-month lows against the Australian and New Zealand dollars, influenced by market expectations of potential interest rate adjustments by the US Federal Reserve early next year.
Despite some Fed officials pushing back against rate cut expectations, market sentiment has continued to impact the US dollar’s decline. Chicago Fed President Austan Goolsbee clarified on Monday that the Fed is not pre-committing to swift rate cuts, highlighting a disparity between market expectations and the central bank’s functioning.
Oil prices, influential in determining currency parity, exhibited mixed trends on Tuesday. Brent crude futures rose by 0.13% to $78.05 a barrel, while the front-month US West Texas Intermediate crude futures contract, expiring on Tuesday, fell 7 cents to $72.40 a barrel.
