Pakistani rupee put an end to its 17-session depreciation streak against the US dollar, showing a 0.26% appreciation in the inter-bank market on Thursday. The State Bank of Pakistan (SBP) reported that the rupee settled at 287.38, marking an increase of Re0.76.
This positive development follows the Pakistani authorities and the International Monetary Fund (IMF) staff reaching a staff-level agreement on the first review under the nine-month $3 billion Stand-By Arrangement (SBA). Pending approval by the IMF’s Executive Board, Pakistan is set to gain access to SDR 528 million, approximately $700 million, bringing the total disbursements under the program to nearly $1.9 billion.
Market analysts anticipate an improvement in Pakistan’s foreign exchange reserve position with the IMF agreement, paving the way for funding from both multilateral and bilateral institutions.
On the global front, the US dollar remained stable early on Thursday, rebounding from recent volatility. Economic data suggesting that the Federal Reserve might delay interest rate cuts contributed to the dollar’s resilience. The dollar index, measuring the greenback against major currencies, registered a slight increase to 104.43 after Wednesday’s recovery from its notable declines.
In the context of currency parity indicators, oil prices experienced a decline on Thursday, extending losses from the previous session. Concerns about lackluster energy demand from China coupled with signals of increased supply from the United States contributed to the fall in Brent futures, down 48 cents at $80.70 a barrel at 0630 GMT.
This recent stability in the Pakistani rupee and the broader global economic trends highlight the interconnected nature of currency markets and the impact of geopolitical and economic factors on exchange rates.
