Inter-bank: Rupee remains stable against US dollar

At 10am, the rupee was hovering at 281.47 in the inter-bank market. On Tuesday, the rupee had depreciated 0.18% to settle at 281.47 against the US dollar.

In a related development, Pakistan and the International Monetary Fund (IMF) will begin crucial discussions on the first review of the $3 billion Stand-by-Arrangement (SBA) from tomorrow (Thursday) amid the government’s claim that all targets have already been met.

An official of Finance Ministry sounded confident about the successful completion of the first review (July-September 2023) under $3 billion SBA.

However, external financing needs may come under sharp focus during the review, as the budgeted $4.5 billion loans from foreign commercial banks and $1.5 billion through the issuance of Eurobonds for the current fiscal year have yet to materialise.

Globally, the yen fell about 1.7% overnight against the US dollar, touching a low of 151.74 - a whisker from the 151.94 level that prompted intervention a year ago.

The US data showed wages and salaries rose solidly last quarter and while consumer confidence ebbed, it fell far less than markets had expected.

The US dollar index measure against a basket of major currencies rose 0.5% on Tuesday to 106.66.

Oil prices, a key indicator of currency parity, edged up in early Asian trade on Wednesday ahead of key global central bank meetings this week including the US Federal Reserve, as the market also closely watched the latest developments in the Israel-Hamas conflict.

Brent January crude futures rose 0.3%, or 28 cents, to $85.30 a barrel by 0330 GMT, after falling more than 1% on Tuesday.