Rupee gains more ground against the US dollar in interbank

The Pakistani Rupee continued its upward trend against the US Dollar, appreciating by Rs. 1.18 to Rs. 283.50 at 10:20 am in the Inter-bank Market. The Rupee appreciated by Rs.1.18 on Wednesday to settle at Rs.274.68 per dollar.

In a significant development, the Ministry of Finance has issued directives to all ministries, urging them to fulfill their commitments to the International Monetary Fund (IMF) as the initial review under the Standby Arrangement (SBA) approaches.

Imdadullah Bosal, the Secretary of Finance, has dispatched letters to all relevant Ministries and Divisions, reiterating the obligations made with the IMF and requesting their full compliance with these commitments made to the Fund.

In November 2023, the International Monetary Fund (IMF) is slated to conduct its first review under the Standby Arrangement (SBA).

On the global front, the US dollar has stabilized, and US Treasury yields have moderated. This adjustment came in response to mixed economic data from the United States, which led investors to scale back their expectations of the Federal Reserve raising interest rates later this year.

The dollar index, which measures the greenback against six major currencies, remained close to its levels from the previous day, hovering around 106.53.

The US dollar retraced some of its recent gains following a report that showed a smaller-than-expected increase in US private payrolls for September, as revealed in the ADP National Employment Report on Wednesday. However, analysts suggest that more data is needed to confirm the pace at which the labor market is cooling.

Meanwhile, longer-term US Treasury yields eased after reaching 16-year highs following the release of the economic data and remained lower during the Asian trading session.

Oil prices, which serve as a significant indicator of currency dynamics, saw a modest uptick on Thursday. This rebound followed significant losses in the previous session. An OPEC+ panel’s decision to maintain oil output cuts aimed at keeping the oil supply tight contributed to this increase in prices. However, concerns over the uncertain demand outlook limited the gains in oil prices.

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