Pakistan’s rupee registered a slight improvement against the US dollar in the interbank market, but was trading near the 239-240 level at the start of the session on Friday.
As of 10:35 am, the rupee was quoting at 239.22, up 0.49 or 0.20% against the greenback, during intra-day trading.
On Thursday, Pakistan’s rupee was largely steady, settling marginally lower at 239.71 against the US dollar after losing Re0.06, or 0.03%, in the interbank market.
In a span of two months, despite disbursement of a $1.16 billion tranche from the International Monetary Fund (IMF), the local currency hit an all-time low against the US dollar in the interbank market.
Later, the Saudi Development Fund also placed a $3-billion deposit with the SBP, which was scheduled to mature in December 2022.
However, the country’s reserves continue to decline, as foreign exchange reserves held by 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 country’s total liquid foreign reserves stood at $14.07 billion, the SBP said on Thursday. Net foreign reserves held by commercial banks stood at $5.72 billion.
Low levels of reserves are a negative for currency markets and add pressure on the rupee, which witnessed its worst monthly performance in July in over 50 years.
Globally, the US dollar maintained its grip against other currencies after the Federal Reserve raised US key interest rates on Wednesday. It was the third consecutive increase of 75 basis points 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, hovering near a two-decade high hit at 111.81 in the previous session, and is on track for a weekly gain of 1.5%.
Oil prices, a key determinant of currency parity, fell on Friday amid recession fears and a stronger U.S. dollar, although losses were capped by supply concerns after Moscow’s renewed mobilization in the war with Ukraine and an apparent stalemate in Iran’s nuclear revival talks. contract
This is an intra-day update