KARACHI: During Wednesday’s opening hours of trading in the inter-bank market, the Pakistani rupee experienced a 0.21% uptick against the US dollar.
By 10:45 am, it was at 283.19, marking a rise of Re0.59 in the inter-bank market.
The rupee experienced a marginal uptick, settling at 283.78 against the US dollar on Tuesday.
Simultaneously, sources informed Business Recorder that the Ministry of Finance (MoF) has urged all ministries, divisions, and entities to honor their commitments to the International Monetary Fund (IMF) within the stipulated time frame. This step is pivotal for the successful completion of the review and the overall programme, as per knowledgeable insiders.
The Secretary of Finance highlighted that the upcoming second review under the Stand-By Arrangement (SBA) is slated for February 2024. To align with this schedule, meeting obligations encompassing structural benchmarks, quantitative performance criteria, indicative targets, and other commitments for the 2nd quarter, as agreed with the IMF, is imperative.
Globally, the US dollar continued its subdued performance against major counterparts on Wednesday. This trend coincided with anticipation surrounding the conclusion of a Federal Reserve policy meeting, which could offer insights into the timeline for US central bank interest rate adjustments.
Early Asian trading witnessed the US dollar dipping to 145.385 yen, extending a 0.5% decline from the prior session. The dollar index, evaluating the dollar against various currencies, steadied at 103.82 post a 0.31% overnight descent.
Later in the day, Fed officials are anticipated to provide updated economic projections alongside interest rate forecasts. The market focus revolves around the expectation of unchanged rates and insights into the economy’s resilience.
Particularly noteworthy is Fed Chair Jerome Powell’s stance regarding potential interest rate cuts in the initial half of 2024, which investors keenly await. Despite recent indicators suggesting a smooth economic trajectory, unexpected November data revealed a rise in consumer prices.
Reflecting on currency dynamics, oil prices stabilized in Asian trade after experiencing over a 3% decline to six-month lows due to supply surplus and demand apprehensions. Brent crude futures for February marginally dropped to $73.23 a barrel, while US West Texas Intermediate crude futures for January dipped to $68.59 a barrel by 0207 GMT.
