25th consecutive gain: Pakistani rupee closes below Rs280 against US dollar

WEB DESK: The Pakistani rupee continued to strengthen its position against the US dollar, marking a remarkable 0.36 per cent gain in the interbank market on Wednesday.

Notably, this marks the 25th consecutive instance of the rupee’s appreciation against the US dollar.

According to the State Bank of Pakistan (SBP), the rupee concluded its trading session at 279.51, exhibiting a notable increase of Re1 within the inter-bank market.

A day earlier, on Tuesday, the rupee had demonstrated a 0.41 per cent appreciation, reaching a settlement at 280.51.

This prolonged surge in the rupee’s value against the US dollar in the inter-bank market can be largely attributed to the stringent actions taken by authorities to combat smuggling and hoarding of foreign currency, coupled with substantial reforms in the Exchange Companies’ sector.

Internationally, the US dollar experienced a general decline on Wednesday, influenced by a decrease in US Treasury yields, primarily due to dovish comments from the Federal Reserve.

Traders eagerly await the central bank’s policy meeting minutes later in the day, hoping for insights into its future interest rate policies.

Several Federal Reserve officials have recently suggested that the central bank might not need to implement as extensive monetary policy tightening as previously anticipated.

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These comments exerted downward pressure on the US dollar, resulting in a two-week low against a basket of currencies. The dollar index remains near this level in early Asia trade, currently standing at 105.66.

Additionally, oil prices, which serve as a crucial indicator of currency stability, experienced a slight decline on Wednesday.

The reduction in concerns regarding supply disruptions in the Middle East, at least for the time being, influenced this trend.

Brent crude oil dipped by 49 cents, or 0.56 per cent, to reach $87.16 per barrel at 1002 GMT, while U.S. West Texas Intermediate (WTI) crude oil declined by 55 cents, or 0.64 per cent, to $85.42.