Pakistani rupee ends higher vs US dollar for the sixth consecutive session

WEB DESK: In the ongoing trend, the Pakistani rupee extended its appreciation against the US dollar for the sixth consecutive session, gaining 0.05 per cent in the inter-bank market on Tuesday.

According to the State Bank of Pakistan (SBP), the rupee settled at 284.38, marking an increase of Re0.15.

On the previous day, the rupee experienced a slight uptick, settling at 284.53 against the US dollar. In a noteworthy development, the International Monetary Fund (IMF) Executive Board has scheduled meetings until December 14.

Interbank closing #ExchangeRate for today https://t.co/tmXLmG0y08 #SBPExchangeRate pic.twitter.com/eJzretyrdj

— SBP (@StateBank_Pak) December 5, 2023

However, it is important to note that Pakistan is not on the agenda, as the first review under the $3 billion stand-by arrangement (SBA) programme remains pending.

The current IMF programme, amounting to $3 billion, is set to conclude in the second week of April 2024, with approximately $1.8 billion yet to be disbursed. The Fund released $1.2 billion as the first tranche in July.

On the global front, the US dollar regained some strength on Tuesday, approaching a one-week high against a basket of currencies.

This resulted in the Antipodean currency retracting from Monday’s four-month peak of $0.6690, which it had reached due to the dollar’s decline in recent sessions.

Meanwhile, the greenback maintained stability and moved away from Monday’s three-month low against the yen.

The upcoming US economic indicators, including November’s non-manufacturing LSM figures and the highly anticipated nonfarm payrolls report, are expected to provide further insight into the future trajectory of interest rates.

Traders have nearly priced in a rate cut from the Federal Reserve by the first half of next year.

In the realm of oil prices, a crucial indicator of currency parity, Tuesday saw stability amid uncertainties surrounding voluntary output cuts by the OPEC+ group of producers, Middle East tensions, and weak economic data from the US.

Brent crude futures saw a modest uptick of 14 cents, reaching $78.17 a barrel by 0735 GMT, while US West Texas Intermediate crude futures rose by 15 cents to $73.19.

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