The Pakistani rupee displayed resilience against the US dollar, registering a noteworthy 0.43 per cent appreciation in the early hours of trading within the inter-bank market on Friday.
By 11:15 am, the rupee had reached a level of 296.68, marking a substantial increase of Rs1.28 in the inter-bank market.
In contrast, on the previous Wednesday, the rupee had demonstrated a 0.29 per cent appreciation, ultimately settling at 297.96.
Concurrently, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) opted to maintain the key policy rate at 22 per cent, anticipating a future decline in inflation.
This decision mirrors the MPC’s stance during the preceding meeting, indicating a consistent status quo in the policy rate despite market expectations of a potential rate hike.
Internationally, the US dollar maintained relative stability in the Asian market on Friday, slightly retreating from its recent gains against other currencies. This shift coincided with the strengthening of the yuan, driven by positive economic data from China.
The US dollar’s surge was driven by an unexpected increase of 0.6 per cent in August retail sales, surpassing the estimated 0.2 per cent rise. Additionally, market participants reacted to the European Central Bank’s 25-basis-point hike.
While the US dollar index currently stands at 105.32, marginally lower than Thursday’s six-month peak of 105.43, it still maintains its overall strength.
Furthermore, oil prices experienced an uptick on Friday, marking their third consecutive weekly gain. This rise was influenced by better-than-expected Chinese economic data and reports indicating record oil consumption, reinforcing the belief in continued high demand from the world’s second-largest crude consumer.
