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Intra-day update: rupee inches up against US dollar

Intra-day update: rupee inches up against US dollar

The Pakistani rupee inched up against the US dollar, appreciating 0.24% during the opening hours of trading in the inter-bank market on Friday.

At around 10:55am, the rupee was being traded at 285.05, an increase of Re0.69. However, in the open market, the US dollar was being traded in the range of 311-313 level against the greenback.

The increase comes after the rupee registered a significant gain to settle at 285.74 or 0.49% up against the US dollar in the inter-bank on Thursday.

In a key development, the country’s total liquid foreign exchange reserves declined by another $206 million during the last week.

According to a weekly report issued by the State Bank of Pakistan (SBP) on Thursday, the total liquid foreign exchange reserves held by the country stood at $9.731 billion as of May 19, 2023, compared to $9.937 billion on May 12, 2023.

Separately, the Reforms & Revenue Mobilization Commission (RRMC) has recommended that petrol stations across the country should not accept cash payments for fuel purchases.

Internationally, the US dollar stood near a two-month high against its major peers on Friday and was headed for a third weekly gain on expectations that US interest rates could remain higher for longer than initially expected.

Jitters over debt ceiling negotiations between US President Joe Biden and top congressional Republican Kevin McCarthy also continued to cast a shadow over market sentiment, with just a week to go before the so-called “X-date” on June 1, when the government would be unable to cover its obligations.

The US dollar index edged 0.05% lower to 104.18.

Oil prices, a key indicator of currency parity, softened in early trade on Friday, weighed on by conflicting messages from Russia and Saudi Arabia ahead of the next OPEC+ policy meeting and a stronger dollar.

This is an intra-day update

Source: Business Recorder

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