Pakistani Rupee remains largely stable against US dollar
US dollar higher against euro, yen
The Pakistani rupee remained largely stable against the US dollar in the inter-bank market on Wednesday. At close, the local unit settled at 278.39, a loss of Re0.01 against the greenback, as per the State Bank of Pakistan (SBP). On Tuesday, the rupee closed at 278.38, lower by Re0.05 or 0.02 percent.
In a key development, it was revealed that country borrowed $6.899 billion from multiple financing sources during the first nine months (JulyMarch) of the current fiscal year 202324 compared to $7.764 billion borrowed during the same period of 202223, according to Economic Affairs Division (EAD) data.
Globally, the US dollar nursed its wounds on Wednesday following big tumbles against the euro and sterling, but the yen remained mired near 34year lows even as Japanese officials stepped up intervention warnings. The dollar’s broad overnight losses were driven by a combination of surprisingly robust European activity data and cooling US business growth
The US dollar index, which measures the currency against six major peers including the euro, sterling and yen, edged 0.07 percent lower to 105.60 in early Asian trading after slumping 0.4 percent overnight and touching the lowest level since April 12 at 105.23.
Oil prices, a key indicator of currency parity, steadied above $88 a barrel on Wednesday after rallying in the previous session on a surprise fall in US crude stocks and a drop in business activity in the world’s largest oil consumer. Brent crude futures fell 24 cents, or 0.27 percent, to $88.18 a barrel by 1024 GMT.
US West Texas Intermediate crude futures lost 33 cents, or 0.4 percent, to $83.03 a barrel. That reversed some of Brent’s roughly 1.6 percent gain from the previous session, when the market was also buoyed by a weaker U.S. dollar and as investors dialed down concerns over the conflict in the Middle East.
Meanwhile, the dollar ticked higher against the euro and yen in subdued trade after last week’s volatility, with markets taking their lead from the Fed’s higher-for-longer messaging and a firmer Wall Street ahead of results from megacap growth companies. Dollar/yen was steady on Monday, up 0.08 percent ahead of the Bank of Japan’s (BOJ) policy review on Friday, trading at 154.75, a whisker away from last week’s 34-year low of 154.79 and close enough to the 155-level that is next on traders’ radars for possible intervention. “There will be a focus on the BOJ meeting, but it is too soon for them to alter policy, and the market gives a change in rates no chance at all,” said Chris Weston, head of research at Pepperstone.
The dollar’s trade-weighted index was up 0.22 percent at 106.33, but off the five-month highs hit last week after comments from Federal Reserve officials and a run of hotter-than-expected inflation data forced a paring back of US rate cut expectations.
A cooling in Middle East tensions, which had driven the dollar, gold and oil sharply higher on Friday and battered stock markets, also helped temper volatility. Tehran downplayed Israel’s retaliatory drone strike, in what appeared to be a move aimed at averting regional escalation.