Pakistani rupee ends higher vs US dollar for the sixth consecutive session


Dollar

WEB DESK: In the ongoing trend, the Pakistani rupee extended its appreciation against the US dollar for the sixth consecutive session, gaining 0.05 per cent in the inter-bank market on Tuesday.

According to the State Bank of Pakistan (SBP), the rupee settled at 284.38, marking an increase of Re0.15.

On the previous day, the rupee experienced a slight uptick, settling at 284.53 against the US dollar. In a noteworthy development, the International Monetary Fund (IMF) Executive Board has scheduled meetings until December 14.

However, it is important to note that Pakistan is not on the agenda, as the first review under the $3 billion stand-by arrangement (SBA) programme remains pending.

The current IMF programme, 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 Fund released $1.2 billion as the first tranche in July.

On the global front, the US dollar regained some strength on Tuesday, approaching a one-week high against a basket of currencies.

This resulted in the Antipodean currency retracting from Monday’s four-month peak of $0.6690, which it had reached due to the dollar’s decline in recent sessions.

Meanwhile, the greenback maintained stability and moved away from Monday’s three-month low against the yen.

The upcoming US economic indicators, including November’s non-manufacturing LSM figures and the highly anticipated nonfarm payrolls report, are expected to provide further insight into the future trajectory of interest rates.

Traders have nearly priced in a rate cut from the Federal Reserve by the first half of next year.

In the realm of oil prices, a crucial indicator of currency parity, Tuesday saw stability amid uncertainties surrounding voluntary output cuts by the OPEC+ group of producers, Middle East tensions, and weak economic data from the US.

Brent crude futures saw a modest uptick of 14 cents, reaching $78.17 a barrel by 0735 GMT, while US West Texas Intermediate crude futures rose by 15 cents to $73.19.

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