The Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.21% during the opening hours of trading in the inter-bank market on Friday. At 10am, the rupee was hovering at 282.20, an increase of Re0.59, in the inter-bank market. On Thursday, the rupee had registered a marginal gain to settle at 282.79 against the US dollar. In a related development, foreign exchange reserves held by the State Bank of Pakistan (SBP) reserves fall below $7 billion. The reserves decreased by $136 million to $6.904 billion due to debt repayments during the week ended December 15, 2023. Internationally, the US dollar languished near a more than four-month low on Friday ahead of a reading on a key US inflation gauge due later in the day, which will provide further clarity on how much room the Federal Reserve has to cut interest rates next year. The greenback hit a five-month trough against the New Zealand dollar and a three-week low against the euro in early Asia trade, resuming its decline after a sudden bout of risk aversion in New York hours on Wednesday led to a selloff in US stocks and a rise in the dollar. Focus now turns to Friday’s US core personal consumption expenditures (PCE) print – the Fed’s preferred measure of underlying inflation – for clues on how far inflation in the world’s largest economy is slowing. Expectations are for the core PCE price index to have risen 3.3% on an annual basis, as compared to October’s 3.5%. Against a basket of currencies, the greenback was last at 101.76, pinned near a more than four-month low of 101.72 hit in the previous session. The dollar index was on track for a weekly loss of about 0.8% and looked set to extend last week’s 1.3% decline, after the Fed left the door open to rate cuts next year at its last policy meeting for 2023. Oil prices, a key indicator of currency parity, rose as much as 1% on Friday as tensions persisted in the Middle East following Houthi attacks on ships in the Red Sea, although Angola’s decision to leave OPEC raised questions over the group’s effectiveness in supporting prices. Brent crude futures were up 86 cents, or 1.1%, to $80.25 a barrel by 0409 GMT, while US West Texas Intermediate crude futures were up 81 cents, or 1.1%, at $74.70 a barrel.
Pakistani rupee continues winning streak against US dollar
