In Friday’s trading session, the Pakistani rupee demonstrated a mostly stable performance against the US dollar, showing a marginal appreciation of 0.01% in the inter-bank market.
Closing figures from the State Bank of Pakistan (SBP) indicated the local currency settling at 278.74 against the greenback, marking a slight increase of Re0.03.
This followed a similar trend observed on Thursday, where the rupee experienced a modest uptick to conclude at 278.77 versus the US dollar, as reported by the SBP.
In a significant development, discussions between the International Monetary Fund (IMF) and Pakistan commenced on Thursday, focusing on the second and final review of Pakistan’s ongoing bailout program, as confirmed by the finance ministry.
Key areas of discourse included Pakistan’s macro-economic indicators, fiscal consolidation efforts, structural reforms, the viability of the energy sector, and governance of state-owned entities.
Finance Minister Muhammad Aurangzeb reiterated the government’s dedication to collaborating with the IMF in pursuit of economic growth and stability through a comprehensive reform agenda.
On the global front, the US dollar exhibited strength on Friday, poised to end a three-week decline, fueled by concerns over higher-than-expected US inflation data. This raised apprehensions regarding the Federal Reserve’s potential decisions on interest rate adjustments for the year.
Recent data revealed a 0.6% increase in the US producer price index for final demand in February, surpassing economists’ projections of a 0.3% rise. This followed a consecutive month of robust consumer price increases reported earlier in the week.
Attention now turns to the upcoming meeting of the US central bank, with investors eagerly anticipating economic projections and remarks from Fed Chair Jerome Powell, despite no anticipated alterations to interest rates.
In parallel, oil prices experienced a slight retreat on Friday but remained on course to achieve nearly a 4% increase for the week. This surge was supported by the International Energy Agency revising its 2024 oil demand forecasts upwards and an unexpected decline in US stockpiles.
Brent crude oil futures edged down by 38 cents to $85.04 a barrel, having surpassed the $85 mark for the first time since November on Thursday. Similarly, US West Texas Intermediate (WTI) crude dropped by 35 cents to $80.91.
In the open market, the Pakistani rupee witnessed minor fluctuations against various currencies. Notably, against the US dollar, the rupee experienced a slight depreciation for buying but a marginal gain for selling, closing at 278.66 and 281.25, respectively.
Against other major currencies such as the Euro, UAE Dirham, and Saudi Riyal, the rupee exhibited varied movements, reflecting the dynamic nature of the forex market.
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