The Pakistani rupee registered significant losses against the US dollar, as it depreciated 1.16% in the inter-bank market on Wednesday.
As per the State Bank of Pakistan (SBP), the rupee settled at 280.29 after a decrease of Rs3.26 in the inter-bank market.
On Tuesday, the rupee ended its 28-session appreciation run, as the currency depreciated 0.07% to settle at 277.03.
In a related development, the large-scale manufacturing (LSM) recorded year-on-year growth of 2.52%, a positive after 11 months, data released by the Pakistan Bureau of Statistics (PBS) revealed.
The decline comes amid “higher demand for the dollars to make upcoming foreign payments,” said Tresmark Finance in a note.
Meanwhile, Shabbar Zaidi, ex-chairman Federal Board of Revenue (FBR), in a post on social media platform X, formerly known as Twitter, termed the US dollar hike as ‘artificial’ and urged the authorities to take immediate action.
“Names of all persons buying from Exchange Companies regularly and frequently to be communicated to State Bank (SBP) and FBR. EC’s sale of US dollars to be inspected daily by SBP staff. Intelligence agencies to be activated,” said Zaidi on Wednesday.
Internationally, the US dollar stood its ground on Wednesday, though it struggled for further headway despite strong US retail sales data, as traders turned their attention to looming Chinese growth figures and the escalating violence in the Middle East.
A blast at a Gaza hospital dealt a blow to hopes the conflict could be contained.
US President Joe Biden is en route to Tel Aviv.
The benchmark 10-year Treasury yield has climbed about 100 basis points since mid July, and the dollar index is up 7% in the same period.
Oil prices, a key indicator of currency parity, surged on Wednesday as tension escalated in the Middle East after hundreds were killed in a blast at a Gaza hospital, sparking concerns about potential oil supply disruptions from the region.
Source: brecorder.com
