The Pakistani rupee sustained its upward trajectory against the US dollar for the 11th consecutive session, exhibiting a 0.06 per cent appreciation in the interbank market on Wednesday.
According to the State Bank of Pakistan (SBP), the rupee concluded at Rs282.20, reflecting an increment of Re0.17.
In the preceding session on Tuesday, the rupee had achieved a marginal gain, settling at Rs282.37 in relation to the US dollar.
Concurrently, there has been a notable surge of 200 per cent in the cumulative borrowing by the federal and provincial governments for budgetary support from the domestic banking system in the current fiscal year (FY24).
Internationally, the US dollar encountered continued pressure on Wednesday, while the euro flirted with a four-month pinnacle.
This trend emerged as market expectations of an imminent interest rate cut by the Federal Reserve gained traction. The restrained week, marked by global holiday absences until the New Year, is anticipated to witness subdued trading volumes.
The dollar index, gauging the US currency against six counterparts, stood at 101.54, just below the five-month low of 101.42 recorded last week.
The index is poised for a 1.9 per cent decline in 2023, following two consecutive years of robust gains driven by the Fed’s rate hikes to combat inflation.
The recent weakening of the dollar is attributed to market anticipation of forthcoming rate cuts by the Fed in the coming year, diminishing the allure of the greenback.
