Fri. Mar 1st, 2024
Rupee strengthens against US dollarRupee strengthens against US dollar

US Dollar: Currency hovers at 283-284 level in inter-bank market

The Pakistani rupee recorded a marginal increase against the US dollar, appreciating 0.06% during the opening hours of trading in the inter-bank market on Monday.

At 11:40 am, the Indian Rupee strengthened to 283.70 against the US Dollar, marking an increase of Re0.17 in the inter-bank market.

Over the previous week, the rupee continued its upward trajectory, experiencing a 0.38% appreciation, settling at 283.87 against the US dollar in the inter-bank market.

This marks the fourth consecutive week of rupee appreciation, driven by momentum following the announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) regarding the first review of the $3 billion Stand-by Arrangement (SBA).

The IMF executive board is scheduled to meet on January 11 to consider the final approval for the disbursement of the next $700 million tranche from its ongoing loan programme with Pakistan.

In a noteworthy development, Pakistan’s Gross Domestic Product (GDP) for the first quarter of the fiscal year has been estimated at 2.17% by the Pakistan Bureau of Statistics (PBS). However, a negative financial account in October 2023 indicates a lack of new inflows from abroad.

Addressing the state of the economy on ‘Paisa Bolta Hai’ with Anjum Ibrahim, former finance minister Dr. Hafeez Pasha expressed a desire for economic improvement, acknowledging a mix of positive and challenging factors.

Internationally, the US dollar began the week on a positive note, influenced by data on accelerated job growth and a lower unemployment rate in November. This challenges expectations of imminent rate cuts from the Federal Reserve early next year.

The focus now shifts to the Federal Open Market Committee (FOMC) policy meeting later in the week and US inflation data, with expectations for consumer prices to continue easing on an annual basis.

Oil prices, a crucial indicator of currency parity, rose on Monday for a second consecutive session. This was attributed to US efforts to replenish strategic reserves, although concerns about crude oversupply and softer fuel demand growth in the coming year persist.

Brent crude futures rose 0.6%, reaching $76.32 a barrel, while US West Texas Intermediate crude futures were at $71.61 a barrel, up 0.5%.

Oil prices, a key indicator influencing currency parity, experienced a second consecutive rise on Monday. This upward movement is attributed to US initiatives to replenish strategic reserves, though concerns persist regarding potential crude oversupply and anticipated softer fuel demand growth in the coming year. Brent crude futures rose by 0.6% to $76.32 a barrel, while US West Texas Intermediate crude futures reached $71.61 a barrel, up by 0.5% or 38 cents.

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By Zarish

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