Rupee marginally declines against US dollar

ISLAMABAD: The Pakistani Rupee experienced a marginal depreciation of 0.24 per cent against the US dollar during Friday’s trading.

At today’s close, the rupee stood at 288.49 in the inter-bank market, marking a decrease of Rs0.89. In the preceding day’s trading, the Pakistani rupee had weakened slightly against the US dollar, showing a 0.05 per cent depreciation to settle at 287.60.

A contributing factor to this development is the State Bank of Pakistan’s (SBP) report that worker remittances amounted to $2.027 billion in July 2023, a decrease of $484 million compared to the $2.511 billion received in July 2022.

With 7.3% monthly decline, Pakistan receives $2b in remittances

According to Business Recorder, the US dollar remained steady internationally as market participants speculated about the Federal Reserve’s potential conclusion of its rate hike cycle. This speculation followed data indicating a moderate 0.2 per cent increase in US consumer prices for July. A senior Fed official, however, cautioned against hasty interpretations.

The dollar index, measuring the US currency against six other currencies, experienced a slight decrease of 0.088 per cent to 102.53 following the release of the Consumer Price Index (CPI) report.

Meanwhile, oil prices, a significant indicator of currency parity, remained relatively stable in Asian trading. Investors weighed optimistic demand projections from the OPEC producer group against mixed economic data from China, the world’s largest oil importer.

Pakistan’s forex reserves drop by $110m