In the interbank market, the Pakistani rupee saw a slight decline versus the US dollar and lost 0.03% in the first few minutes of trading on Wednesday.
During intra-day trade at roughly 10:15 am, the rupee was quoted at 219.79, a decrease of Re0.06 versus the US dollar.
The Pakistani rupee rose against the US dollar for the third straight session on Tuesday, closing at 219.73 after rising Re0.68 (0.31%) in interbank trading.
The increase in the currency’s performance is attributed by experts to a rebound in optimism following Pakistan’s removal from the Financial Action Task Force (FATF) grey list last week.
In a video message, Jehanzaib Zafar, CFA, Head of Research at AKD Securities, said: “This is a positive development, and its direct influence would be reflected in Pakistan’s flow of money and cost of borrowing, which after getting whitelisted is likely to drop off.”
Additionally, he continued, “FDI inflows would also improve like it did earlier.”
In comparison to major counterparts globally, the dollar slumped on Wednesday, approaching a three-week low, as new indications of the US economy’s deterioration fueled speculation about a Federal Reserve that was less aggressive.
In the wake of recent indications that the Fed’s rate rises are already slowing the world’s largest economy, data released tonight revealed that US home prices fell in August as rising mortgage rates drained demand.
The dollar index, which compares the greenback to six other currencies, including the yen, the euro, and sterling, showed little change at 110.75, its lowest level since October 5.
Oil prices, a key indicator of currency parity, eased on Wednesday after industry data showed US crude stockpiles rose more than expected, but losses were capped by supply worries.
