The Pakistani rupee remained largely stable against the US dollar on Friday, rising 0.003% in the interbank market.
Rupee Appreciation Against Greenback
According to the State Bank of Pakistan (SBP), the rupee settled at 278.80 after a Rs. 0.01 increase in the interbank market.
Interbank closing #ExchangeRate for todayhttps://t.co/gBc4wXdK0o#SBPExchangeRate pic.twitter.com/7at62UZLzX
— SBP (@StateBank_Pak) October 20, 2023
However, the rupee recovered against the US dollar on Thursday, rising 0.53% to settle at 278.81.
In a related development, the country’s current account deficit fell to $8 million in September 2023, compared to $360 million in the same month in 2022.
Moreover, in August 2023, the country’s current account deficit was $164 million.
Pakistan’s Current Account Deficit
The country’s current account deficit fell to $947 million in the first three months of the current fiscal year FY24 (from July 2023 to September 2023), down from $2.258 billion in the same period last year.
Furthermore, according to data released on Thursday, the country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $67 million on a weekly basis, totaling $7.7 billion as of October 13.
Internationally, the US dollar was just a hair’s breadth away from the closely watched 150 yen level on Friday, buoyed by a surge in the US 10-year Treasury yield, which briefly reached 5% in the previous session for the first time since 2007.
The dollar index rose 0.08% to 106.29, but it was still on track for a weekly loss.
Israel-Gaza Conflict Effects on Dollar Internationally
Furthermore, oil prices, a key indicator of currency parity, extended gains on Friday and were on track to rise for a second week as investors worried that the Israel-Gaza conflict would spread throughout the Middle East, disrupting supply from one of the world’s top-producing regions.
To read our blog on “Rupee gains against US Dollar 19th day in a row,” click here.
