Karachi: Rupee remained stable against dollar, settling with marginal improvement of 0.02 percent during trading session. According to State Bank of Pakistan (SBP), domestic unit closed at 283.82, an increase of 0.06 paisa.

In key development, US Federal Reserve  raised interest rates by quarter of percentage point and signaled it may pause further increases and giving officials time to assess fallout from recent bank failures, wait on resolution of political standoff over US debt ceiling and monitor course of inflation.

Unanimous decision lifted US central bank’s benchmark overnight interest rate to 5 percent-5.25 percent range. This was Fed’s tenth consecutive increase since March 2022.

Internationally, slipped against most major currencies on Thursday after US Federal Reserve opened door to pause in its aggressive tightening cycle, though markets were buffeted by risk aversion amid rout in regional US bank shares.

Oil prices, key indicator of currency parity rose but were unable to claw back more than 9 percent decline during previous three days as demand concerns in major consumers overrode signals that US may pause its interest rates increases.

Published in The Daily National Courier, May, 05 2023

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