ISLAMABAD: The Pakistani rupee strengthened against the US dollar on Friday, appreciating by 0.1% in the inter-bank market. By the close of the session, the rupee was trading at 278.16, marking a gain of Re0.28 from the previous day’s rate of 278.44, as reported by the State Bank of Pakistan (SBP).
This improvement comes as the International Monetary Fund (IMF) Executive Board prepares to discuss Pakistan’s 37-month Extended Fund Facility (EFF) of approximately $7 billion on September 25. Julie Kozack, Director of the Communications Department at the IMF, confirmed the upcoming board meeting, highlighting that Pakistan has secured the necessary financial assurances from development partners.
Additionally, the SBP’s Monetary Policy Committee (MPC) took decisive action on Thursday by slashing the key policy rate by 200 basis points to 17.5%. This marks the most significant rate cut since April 2020, prompted by easing inflation and a decline in global oil prices.
Internationally, the US dollar softened on Friday as investors eagerly anticipate next week’s central bank meetings, particularly the Federal Reserve’s decision on interest rate cuts. Speculation surrounding whether the Fed will opt for a 25 or 50 basis point cut has kept investors cautious, with US jobless claims data and reports from the Financial Times and Wall Street Journal suggesting the possibility of a larger rate reduction.
In the open market, the rupee saw mixed results. The PKR lost 13 paise for buying but gained 10 paise for selling against the dollar, closing at 279.54 and 280.75, respectively.
Meanwhile, oil prices continued their rally, with Brent crude futures rising by 38 cents to $72.35 per barrel, and US West Texas Intermediate crude futures increasing by 40 cents to $69.37, following production disruptions in the US Gulf of Mexico caused by Hurricane Francine.
Inter-Bank Dollar Rates (Friday)
– Bid: Rs 278.16
– Offer: Rs 278.36
Open Market Dollar Rates (Friday)
– Bid: Rs 279.54
– Offer: Rs 280.75
