KARACHI: The Pakistani rupee remained stable against the US dollar in the initial trading hours on Wednesday.
At 10 am, the exchange rate stood at 281.47 in the inter-bank market. In the previous day’s trading, the rupee had experienced a 0.18% depreciation, settling at the same rate of 281.47 against the US dollar.
Furthermore, Pakistan and the International Monetary Fund (IMF) are set to commence crucial discussions on the first review of the $3 billion Stand-by Arrangement (SBA) starting tomorrow (Thursday). The government has asserted that all the specified targets have already been met, and a Finance Ministry official has expressed confidence in the successful completion of the first review for the period of July-September 2023. However, external financing needs are likely to be a key focus during the review since the budgeted $4.5 billion in loans from foreign commercial banks and $1.5 billion through the issuance of Eurobonds for the current fiscal year have yet to materialize.
Globally, the yen depreciated about 1.7% against the US dollar overnight, reaching a low of 151.74, which is very close to the 151.94 level that triggered intervention a year ago. US data indicated solid growth in wages and salaries during the last quarter, and while consumer confidence decreased, it was not as significant a drop as the markets had anticipated. The US dollar index, which measures the currency against a basket of major currencies, increased by 0.5% on Tuesday to reach 106.66.
In addition, oil prices, a critical indicator of currency parity, edged up in early Asian trading on Wednesday. This move came ahead of important global central bank meetings, including the US Federal Reserve. The market was also closely monitoring the latest developments in the Israel-Hamas conflict. Brent January crude futures increased by 0.3%, or 28 cents, to reach $85.30 a barrel by 0330 GMT, following a drop of more than 1% on Tuesday.
