In the early hours of trading on Thursday, the Pakistani rupee declined 0.14% against the US dollar in the interbank market.
The rupee depreciated by Re0.32 versus the dollar to a value of 221 at around 3 o’clock in the afternoon during intraday trade.
The Pakistani rupee resumed its previous behavior against the US dollar on Wednesday, falling Re0.95 or 0.43% to close at 220.68.
The Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan’s announcement on Tuesday to begin a “long march” from Lahore to Islamabad on Friday (October 28) caused a negative mood among market players, according to experts, which contributed to the rupee’s slide amid political uncertainty.
Another significant step was the Asian Development Bank’s (ADB) announcement on Wednesday of $1.5 billion for Pakistan to strengthen the country’s economy and assist in the rehabilitation of those impacted by the recent floods.
“State Bank of Pakistan (SBP) has received $1.5 billion from ADB in value as a policy-based loan disbursement for the Government of Pakistan on October 26, 2022. The SBP’s FX reserves have increased as a result of these proceeds, and they will be reflected in the reserves for the week ending October 28, 2022, according to a tweet from the central bank on Thursday.
The euro climbed above parity and the dollar’s other major peers reached multi-week highs on Thursday as market expectations rose that the Federal Reserve would scale down its hawkish stance on interest rate hikes.
Against a basket of currencies, the US dollar index was up 0.06% at 109.63, following a 1.1% fall overnight.
Oil prices, a key determinant of currency parity, rose on Thursday, extending a more than 3% rally in the previous session, boosted by record US crude exports and a weaker US dollar, though gains were capped in Asia due to lingering fears over slack demand in China.
