Inter-bank market: rupee improves marginally, settles at 285.38 against USD

The Pakistani rupee improved marginally against the US dollar, appreciating 0.03% in the inter-bank market on Thursday.

At close, the currency settled at 285.38, an increase of Re0.09, as per the State Bank of Pakistan (SBP).

However, in the open-market, the Pakistani rupee witnessed a significant appreciation against the US dollar, but dealers reported a shortage of the foreign currency.

On Wednesday, the rupee sustained marginal losses to settle at 285.47 or 0.04% down against the US dollar in the inter-bank.

In a key development, Minister of State for Finance Aisha Ghaus Pasha on Wednesday said the prime minister and the ministry of finance remain in total commitment to the International Monetary Fund (IMF) programme and “we are not thinking anything without the Fund’s programme”.

The resumption of the bailout, which remains stalled since November last year, is crucial for the cash-strapped economy.

Internationally, the US dollar retreated from a two-week top against its major peers on Thursday as investors trimmed bets that the Federal Reserve will raise interest rates this month, though the looming debt ceiling deadline gave safe haven support to the greenback.

A divided US House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling on Wednesday, with the focus now on how it will fare in the Democratic-led Senate just days before the federal government is expected to run out of money to pay its bills.

The US dollar index rose 0.06% to 104.21, though was still down from an over two-month high hit in the previous session, as traders pared back their expectations of another rate hike by the Federal Reserve this month.

Oil prices, a key indicator of currency parity, steadied on Thursday as a potential pause in US interest rate hikes and the passing of a crucial vote on the US debt ceiling bill were offset by a report of rising inventories in the world’s biggest oil consumer.