Rupee shows stability in market against U$D at this weekend

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.

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.