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Rupee comparatively stabile, settles at 283.82 against US dollar

May 4, 2023 at 6:01 pm | Economic Affairs

May, 04(E.A Report) — Pakistani rupee stayed comparatively stable against the US dollar by settling with a marginal improvement of 0.02% during the trading session on Thursday.
According to the State Bank of Pakistan (SBP), local currency closed at 283.82, an increase of Rs.0.06.
Rupee, last day, registered a marginal gain against US dollar, settling at 283.88 in the inter-bank market.
US Federal Reserve interest rates raised was a key development, which was a quarter of a percentage point and signaled, may pause further increases, giving officials time to assess the fallout from recent bank failures, wait on the resolution of a political standoff over the US debt ceiling, and monitor the course of inflation.
Unanimous decision lifted the US central bank’s benchmark overnight interest rate to the 5.00%-5.25% range.
This was Fed’s tenth consecutive increase since March 2022.
Internationally, the US dollar slipped against most major currencies on Thursday after the US Federal Reserve opened the door to a pause in its aggressive tightening cycle, though markets were buffeted by risk aversion amid a rout in regional US bank shares.
US dollar index was last 0.12% lower at 101.11, after dropping more than 0.6% in the previous session.
Money markets are now expecting the Fed to keep interest rates steady at its next meeting in June, and have priced in roughly 80 basis points of rate cuts beginning July through to the end of the year.
Oil prices, a key indicator of currency parity, rose on Thursday but were unable to claw back the more than 9% decline during the previous three days as demand concerns in major consumers overrode signals that the US may pause its interest rates increases.

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