![]() ![]() "(A) Stronger (inflation) print could push back market's dovish expectations and that would pose upward risk to the U.S. The inflation print comes after the Federal Reserve last week signalled a pause contingent on how economic data evolves and in the backdrop of investors pricing in rate cuts from September onwards. The dollar index was marginally higher at 101.48. yield climbed back to near 4% ahead of the U.S. Other Asian currencies were mostly lower in the wake of the overnight rise in U.S. Possible exhaustion of dollar short positions in the wake of the Reserve Bank of India's intervention may be another reason, the trader added. It was, in all likelihood, related to one-off dollar outflow, he said. IST, down from 81.7950 in the previous session.Ī large U.S.-based bank is mainly on the bid (on USD/INR), a spot trader at a public sector bank said. In the open market, the PKR gained 10 rupees for both buying and selling against USD, closing at 286 and 289, respectively.Īgainst Euro, the PKR gained 3 rupees for both buying and selling, closing at 317 and 320 respectively.Īgainst UAE Dirham, the PKR gained 1 rupee 50 paisa for both buying and selling, closing at 80.50 and 81.30, respectively.Īgainst Saudi Riyal, the PKR gained 2 rupees for buying and 2 rupees 5 paisa for selling, closing at 78.00 and 78.75, respectively.MUMBAI, May 9 (Reuters) - The Indian rupee fell on Tuesday likely on the back of dollar outflows by a large foreign bank and pressured by the rise in U.S. Inter-bank market rates for dollar on Friday Oil prices, a key indicator of currency parity, slipped on Friday, heading for a fourth weekly decline, as renewed economic concerns in the United States and China revived concern about fuel demand growth in the world’s two largest oil consumers. The index is set to snap a two-week losing streak, gaining 0.7% this week. The dollar index, which measures the US currency against six rivals, eased 0.059% to 102.02, not far from the 102.15 it touched overnight, the highest since May 2. ![]() Internationally, the US dollar was clinging close to a more than one week peak on Friday as a slew of data overnight pointed to a slowing US economy, with investors betting that the Federal Reserve will further pause its interest rate increases. ![]() This was not the case today, thus the currency rebounded,” he added. “Yesterday (Thursday), Letters of Credit on account of oil payments were retired, which led to an increased demand for the US dollar. The expert said that high demand for US dollars and political tension drove the rupee towards a record low. “This is the highest ever day-to-day appreciation recorded on absolute terms,” Tahir Abbas, Head of Research at Arif Habib Limited (AHL), told Business Recorder. Political volatility rose in Pakistan amid deadly unrest sparked by Pakistan Tehreek-e-Insaaf (PTI) chief Imran Khan’s arrest on Tuesday that aggravated instability at a time of severe economic crisis and a delay in the IMF bailout. “What we were seeing for the past two days was random depreciation, which is being corrected,” he added. The market expert said political uncertainty caused the depreciation. “The rebound comes on the back of lower political temperature,” said Saad Khan, Head of Research at IGI Securities, told Business Recorder. He also said the budget would be presented on June 9, 2023. He added that China is expected to roll over another $2.4 billion. Taking to the media on Thursday, Dar said that there is a plan for foreign payments of $3.7 billion in May and June. The massive appreciation comes after the rupee finished at a record low of 298.93 against the US dollar in the inter-bank market on Thursday.Īs the dust settled a bit on the political front after the Supreme Court declared Imran Khan’s arrest illegal, and violent protests ended, investors took some positive cues from the development.Īdditionally, Finance Minister Ishaq Dar again moved to pacify markets that Pakistan, with or without the International Monetary Fund (IMF), will not default and shall fulfill external obligations in a timely manner. ![]()
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