Mohsin Siddiqui (Chief Reporter)
Tuesday’s inter-bank trading session, the Pakistani rupee demonstrated a slight uptick of 0.11% against the US dollar, reaching 284.22. This marked a positive movement of Re0.31 within the inter-bank market.
On the preceding day, the rupee experienced a marginal gain, settling at 284.53 against the US dollar.
Notably, the International Monetary Fund (IMF) Executive Board has scheduled meetings until December 14. However, Pakistan’s first review under the $3 billion stand-by arrangement (SBA) program is still pending and not on the current agenda.
The ongoing IMF program, amounting to $3 billion, is set to conclude in the second week of April 2024, with approximately $1.8 billion yet to be disbursed. The first tranche of $1.2 billion was released by the Fund in July.
On a global scale, the US dollar regained strength on Tuesday, approaching a one-week high against a basket of currencies. This movement distanced the Antipodean currency from its Monday four-month peak of $0.6690, which it achieved during the dollar’s recent decline.
In other financial markets, the US dollar remained relatively stable, rebounding from Monday’s three-month low against the yen. This week’s US economic indicators, including November’s non-manufacturing LSM figures and the anticipated nonfarm payrolls report, are expected to offer insights into the future trajectory of interest rates. Traders have nearly priced in a Federal Reserve rate cut by the first half of the coming year.
Oil prices, considered a significant indicator of currency parity, remained largely unchanged on Tuesday amid uncertainties surrounding voluntary output cuts by OPEC+, ongoing tensions in the Middle East, and weak economic data from the US. Brent crude futures saw a minimal decline of 1 cent, closing at $78.02 a barrel, while US West Texas Intermediate crude futures edged up by 5 cents, reaching $73.09 a barrel.
