In the interbank market, the Pakistani rupee has been losing ground against the US dollar and was trading at approximately 236-237 on Friday. As of 12:30 p.m, intraday trading has seen the rupee depreciate by Re0.92 or 0.4% against the US dollar, quoting at 236.80.
In the interbank market on Thursday, the Pakistani rupee declined against the US dollar for the tenth straight session as investors expected funding from allies and foreign creditors. It ended the day down 0.66% at 235.88.
As a result of Pakistan fulfilling all previous IMF requirements and the program’s commencement, the local currency had increased somewhat. This allowed Pakistan to secure an infusion of $1.17 billion under the Extended Fund Facility (EFF).
The local currency has recently, however, been under intense pressure once more and is currently hovering close to its all-time low as funding anticipated from allies has not yet materialized.
Additionally, the State Bank of Pakistan’s (SBP) foreign exchange reserves decreased by $176 million, reaching $8.62 billion as of September 9, 2022, according to information made public on Thursday.
According to the SBP, the nation possessed $14.32 billion in liquid foreign reserves. Commercial banks’ net foreign reserves totaled $5.7.
Globally, the dollar remained close to recent highs on Friday as Treasury yields rose and the demand for the currency persisted on expectations that the Federal Reserve would need to raise rates further to control inflation.
The US dollar index, which compares the value of the dollar to a basket of other currencies, increased to 109.69, which is not far from its two-decade high of 110.79.
In the meantime, oil prices, a crucial factor in determining currency parity, increased somewhat on Friday but were still headed for a weekly fall due to concerns over sudden interest rate increases that would hurt global growth and fuel demand.
