The Pakistani rupee registered a marginal improvement against the US dollar in the inter-bank market, but was trading at 239-240 levels in the early hours of Friday’s session.
Around 10:35 am, during intra-day trading, the rupee was quoted at 239.22, up Re0.49 or 0.20% against the greenback.
On Thursday, the Pakistani rupee was largely steady, settling marginally lower at 239.71 against the US dollar after depreciating Re0.06, or 0.03%, in the inter-bank market.
Over the course of two months, despite the disbursement of a $1.16 billion tranche from the International Monetary Fund (IMF), the local currency has reached full parity against the US dollar in the inter-bank market.
Later, the Saudi Development Fund also rolled a $3-billion deposit with SBP, which is due to mature in December 2022.
However, the country’s reserves continued to dwindle as foreign exchange reserves with the central bank fell by $278 million to $8.35 billion as of September 16, 2022, according to data released by the SBP on Thursday.
The SBP said on Thursday that the country’s total liquid foreign reserves stood at $14.07 billion. Net foreign reserves with commercial banks were $5.72 billion.
Low levels of reserves are negative for the currency market and will add pressure on the rupee, which saw its worst monthly performance in July in 50 years.
Globally, the US dollar maintained its hold against other currencies after the Federal Reserve raised key US interest rates on Wednesday. This was a 75 basis point increase in a row by the Fed’s policy-setting Federal Open Market Committee (FOMC), which took the policy rate to 3.0-3.25%.
The US dollar index rose 0.16% to 111.40, off a two-decade high hit at 111.81 in the previous session, and is on track for a 1.5% gain for the week.
Oil prices fell on Friday amid recession fears and a stronger US dollar, although losses were eased by Moscow’s renewed mobilization campaign in the war with Ukraine and an apparent stalemate in talks over Iran’s nuclear resurgence. Agreement.
This is an intra-day update