On Thursday, the Pakistani rupee experienced a depreciation of 1.13% against the US dollar, settling at 282.3 as reported by the State Bank of Pakistan (SBP).
This decline of Rs3.18 in the inter-bank market followed a decrease of Rs1.25 or 0.45% on Wednesday, when the rupee settled at 279.12 against the US dollar after three successive gains. SBP Governor Jameel Ahmed shared that measures have been taken to control imports, and the current account deficit is expected to be $7 billion for the current fiscal year, which is lower than the budgetary target of $10 billion.
In the international market, the US dollar was near a three-month high on Thursday due to Federal Reserve Chair Jerome Powell’s remarks that interest rates may need to rise faster to curb inflation. Although Powell remained cautious about the scale and path of future rate hikes being dependent on data, the US dollar index, which measures the greenback against a basket of six peers, remained close to a three-month peak, having increased by 1.3% on Tuesday. Additionally, oil prices fell for a third day due to concerns over rising interest rates’ potential economic impact, despite a surprise drop in US crude inventories and optimism about Chinese demand.