Intraday update: Rupee Declines Against US Dollar

The Pakistani rupee depreciated 0.41% against the US dollar during trade on Tuesday.

At 11:45 a.m., the rupee was trading at 298.35, down Rs1.22 in the interbank market.

The rupee remained under pressure against the US dollar on Monday, closing at 297.13 in the interbank market.

In a significant development, interim Finance Minister Shamshad Akhtar conducted her first meeting on the power industry since taking over.

An official, speaking on the condition of anonymity, stated that the power sector is a big difficulty for the caretaker government, as it has been for all past governments, due to power theft and non-recovery of billed amounts.

Internationally, the US dollar maintained near a 10-week high versus a basket of major rivals, and near its highest since November against the yen, as Treasury yields soared to new post-financial-crisis highs on Tuesday, on speculation that US rates will remain high for a longer period of time.

The US dollar index, which compares the greenback to six developed-market currencies, including the yen and euro, fell 0.1 to 103.24 but remained close to Friday’s high of 103.68, a level not seen since June 12.

Oil prices, a crucial indicator of currency parity, fell on Tuesday as the market waited to see if Iraqi oil exports resumed, which might alleviate supply tightness induced by the OPEC+ reduction, while the Chinese economy remained weak, undermining global demand prospects.

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