Slight decrease observed in rupee’s value against US dollar

During the early hours of trade on Thursday, the Pakistani rupee depreciated 0.07% against the US dollar in the interbank market.

Around 10:30 a.m., the currency was trading at 283.59, down Re0.20.

On Wednesday, the rupee stayed mostly unchanged versus the US dollar, finishing at 283.39 in the interbank market, which reopened after a five-day break due to Eid vacations.

Market investors are still waiting for the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) to resume operations, which has been frozen since last year.

On Thursday, the US dollar stayed near a one-year low versus the euro, as Europe’s strong economy contrasted with banking contagion worries in the US, the debt ceiling standoff, and a probable recession.

The dollar index, which measures the greenback against six major counterparts, with the euro being the most heavily weighted, was little changed at 101.41, after falling 0.42% to a near two-week low of 101.00 on Wednesday.

Capital goods spending in the United States declined more than expected overnight, fueling fears of a recession. The prolonged slide of First Republic Bank, as well as the ongoing bickering over an extension of the US debt ceiling, did not help the mood.

Oil prices, a major measure of currency parity, rebounded on Thursday, reversing earlier losses caused by US recession fears and higher Russian oil exports, which mitigated the impact of OPEC production restrictions.

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