Rupee makes modest recovery against US dollar
The Pakistani rupee registered a minor gain against the US dollar, appreciating 0.04% in the opening hours of trading in the inter-bank market on Friday. At 10:20am, the rupee was hovering at 277.82, a gain of Re0.11 against the greenback.
On Thursday, the rupee remained largely stable to settle at 277.93 against the US dollar, according to the State Bank of Pakistan (SBP). In a key development, the International Monetary Fund (IMF) said that its Executive Board meeting is expected to be held in “late April” upon which Pakistan would receive funds of around $1.1 billion.
Meanwhile, Prime Minister Shehbaz Sharif highlighted the importance of a new IMF programme for the revival of the economy.The finance minister is leaving for
Washington to attend the World Bank and the IMF spring meetings where he would also hold talks on a new programme.
Internationally, the US dollar held steady against peer currencies on Friday after rebounding from a twoweek low, as traders braced for a key jobs report due later in the day and grew cautious over tensions in the Middle East. Overall, however, major currencies were looking rather subdued on Friday before the March nonfarm payrolls report.
The dollar has had a turbulent week, falling from a five-month high to a two-week low after an unexpected slowdown in US services growth supported expectations of bringing interest rates down.
The jobs data, as well as incoming inflation readings next week, will be important in shaping the outlook for the Fed’s April 30-May 1 and June 1112 policy meetings. Economists expect 200,000 jobs were added in March.
Oil prices, a key indicator of currency parity, extended gains on Friday and headed for a second weekly gain, supported by geopolitical tensions in Europe and the Middle East, concerns over tightening supply, and optimism about global fuel demand growth as economies improve.
Brent crude climbed 40 cents, or 0.4%, to $91.05 a barrel by 0425 GMT. US West Texas Intermediate crude was at $86.82 a barrel, up 23 cents, or 0.3%. Both benchmarks settled at their highest since October on Thursday.