Rupee weakens further, settles at 288.49 against US dollar
The Pakistani rupee weakened further against the US dollar with a depreciation of 0.31% in the inter-bank market on Friday.
At close, the currency settled at 288.49, a decrease of Re0.89, as per the State Bank of Pakistan (SBP).
On Thursday, the Pakistani rupee weakened marginally against the US dollar and depreciated 0.05% to settle at 287.60.
In a key development, inflow of home remittances fell sharply, i.e., over 19.3% during the first month of this fiscal year, mainly due to volatility in the exchange market.
According to the State Bank of Pakistan (SBP), the country received workers’ remittances amounting to $2.027 billion in July 2023 compared to $2.511 billion in July 2022, depicting a decline of $484 million.
Internationally, the US dollar was steady on Friday as traders wagered that the Federal Reserve’s rate hike cycle could be over after data showed US consumer prices increased moderately in July, though a senior Fed official cautioned against taking a premature view.
Overnight, data showed the US consumer price index rose 0.2% last month, matching the gain in June, with the CPI climbing 3.2% in the 12 months through July.
The dollar index, which measures the US currency against six rivals, eased 0.088% at 102.53 after some volatile trading overnight following the CPI report.
Oil price, a key indicator of currency parity, was largely unchanged in Asian morning trade as investors weighed optimistic demand forecasts from the OPEC producer group against mixed economic data in top importer China.
