Interbank closing: PKR gains 3 paisa against US dollar

WEB DESK: The Pakistani rupee (PKR) experienced a slight uptick against the US dollar on Friday, gaining 0.01 per cent in the interbank market. Closing at Rs278.74, the PKR strengthened by 3 paisa against the greenback.

Against the Euro, the PKR gained 1.57 rupees, closing at Rs303.33, compared to its previous value of Rs304.89.

The British Pound saw a decrease in value of 1.79 rupees, closing at Rs355.17, down from Rs356.97 recorded a day earlier.

According to the State Bank of Pakistan (SBP), the local currency showed marginal improvement, settling at Rs278.77 against the US dollar during the previous trading day (Thursday).

In significant developments, the International Monetary Fund (IMF) and Pakistan initiated discussions on Thursday as part of the second and final review of Pakistan’s ongoing bailout programme, as confirmed by the finance ministry.

The ministry stated that discussions between the IMF and Islamabad revolved around Pakistan’s macroeconomic indicators, fiscal consolidation efforts, structural reforms, the viability of the energy sector, and the governance of state-owned entities.

Internationally, the US dollar displayed strength on Friday, poised to end a three-week losing streak fueled by hotter-than-expected US inflation data.

This development raised concerns about the Federal Reserve’s potential timing and magnitude of interest rate cuts later this year.

Oil prices, an influential factor in currency parity, dipped slightly on Friday but remained on track to register nearly a 4 per cent gain for the week.

This surge was propelled by the International Energy Agency revising its 2024 oil demand forecasts upward and an unexpected decline in US stockpiles.

Brent crude oil futures retreated by 38 cents, or 0.4 per cent, to $85.04 a barrel at 0751 GMT, following their ascent above $85 a barrel for the first time since November on Thursday.

US West Texas Intermediate (WTI) crude dropped by 35 cents, or 0.4 per cent, to $80.91.