Karachi: Rupee improved marginally against dollar, appreciating 0.03 percent in inter-bank market.

At close, domestic unit settled at 285.38, an increase of 0.09 paisa as per State Bank of Pakistan.

However, in open-market, rupee witnessed significant appreciation against dollar, but dealers reported shortage of foreign currency.

Resumption of bailout, which remains stalled since November last year is crucial for cash-strapped economy. Internationally, from two-week top against its major peers as investors trimmed bets that Federal Reserve will raise interest rates this month, though looming debt ceiling deadline gave safe haven support to greenback.

Divided US House of Representatives passed bill to suspend $ 31.4 trillion debt ceiling on Wednesday, with focus now on how it will fare in Democratic-led Senate just days before government is expected to run out of money to pay its bills. US dollar index rose 0.06 percent to 104.21, though was still down from an over two-month high hit in previous session, as traders pared back their expectations of another rate hike by Federal Reserve this month.

Oil prices, key indicator of currency parity, steadied on Thursday as potential pause in US interest rate hikes and passing of crucial vote on US debt ceiling bill were offset by report of rising inventories in world’s biggest oil consumer.

Published in The Daily National Courier, June, 02 2023

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