Rupee appreciates against US dollar in inter-day trading

KARACHI – The Pakistani rupee saw a slight appreciation against the US dollar on Friday, gaining 0.1% in the early hours of trading in the inter-bank market.

At 10 am, the rupee was trading at 278.15, up by Re0.29 against the greenback.

On Thursday, the rupee had experienced a minor decline, settling at 278.44 against the US dollar, according to the State Bank of Pakistan (SBP).

In a significant update, the International Monetary Fund is prepared to support Pakistan, emphasizing the importance of reform measures over the size of the new program, said the fund's Middle East and Central Asia director on Thursday.

“I think what is important at this stage is to accelerate the reforms and double down on the structure of reforms to enable Pakistan to reach its full growth potential,” said Jihad Azour at a press conference during the IMF 2024 Spring Meetings.

Globally, a wave of risk aversion affected markets on Friday, causing the Australian and New Zealand dollars to decline sharply, while the yen gained support due to safe-haven buying after reports of explosions in Iran emerged.

In the broader market, the dollar strengthened, aiming for a second consecutive week of gains as a hotter-than-expected US economy delayed expectations of Federal Reserve rate cuts.

Oil prices, a key indicator of currency parity, surged $3 a barrel on Friday after reports of Israeli missile strikes in Iran, sparking worries of potential disruptions to Middle East oil supply.