Intra-day update: rupee largely stable against US dollar

The Pakistani rupee stayed mostly constant versus the US dollar on Wednesday, rising almost 0.04% during the first hours of interbank trading.

The rupee was trading at 285.25, a rise of Re0.10, around 12:20 pm.

In the interbank market on Tuesday, the rupee rose somewhat to settle at 285.35, or 0.02% higher, against the US dollar.

In a significant breakthrough, Esther Perez Ruiz, International Monetary Fund (IMF) Resident Representative in Pakistan, recognised import limitations as the main culprits affecting the economy while replying to questions.

“In Pakistan, import suppression is causing shortages of goods and plant closures, undermining economic activity and revenue collection,” added Ruiz.

In response to another query, an IMF official indicated that the financial framework underlying the policies agreed upon with the authorities is included in the staff report that will be released following the approval of the ninth review by the IMF Executive Board.

The restart of the IMF plan, which has been suspended since November of last year, is critical for the country’s cash-strapped economy.

Internationally, the US dollar was trading below the critical 140 yen mark on Wednesday, having fallen from a six-month high following a meeting of Japanese authorities on Tuesday to discuss their currency.

The global dollar index increased to 104.283 from 104.165 at the previous close.

The spotlight is now on the United States House of Representatives, which will debate debt ceiling legislation and vote on its passage on Wednesday.

Oil prices, a crucial currency parity indicator, fell further early on Wednesday as concerns over slowing demand from top oil importer China following the release of weaker-than-expected economic data offset some encouraging momentum on the US debt ceiling deal.

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