Pakistani rupee has shown a marginal increase against the US dollar, appreciating by 0.06% in the opening hours of trading in the inter-bank market on Friday.
As of 10:10 am, the rupee was trading at 278.25, marking a gain of Re0.16 against the greenback, according to data from the State Bank of Pakistan (SBP). This follows a marginal improvement on Thursday, where the rupee settled at 278.41 against the US dollar.
Meanwhile, data from the Economic Affairs Division (EAD) reveals that Pakistan has borrowed $6.678 billion from multiple financing sources during the first eight months (July-February) of the current fiscal year 2023-24, compared to $7.407 billion borrowed during the same period in 2022-23.
Globally, the US dollar is poised for a second week of broad gains, despite a rate hike in Japan. The US Federal Reserve has maintained its funds rate between 5.25% and 5.5%, with projections for three cuts by year’s end, leading to market expectations of minimal rate cuts for this year.
Additionally, oil prices experienced a decline on Friday due to the possibility of a Gaza ceasefire and weakening US gasoline demand, coupled with a stronger dollar. Brent crude futures fell to $85.36 a barrel, while US crude futures dropped to $80.67 per barrel.
Overall, both the rupee’s performance against the US dollar and global market trends are key factors influencing currency parity and economic dynamics.
