Karachi: Rupee remained largely unchanged against dollar during trading in inter-bank market. According to State Bank of Pakistan domestic unit settled at 283.89 an increase of 0.01 paisa.

Development comes after rupee regained some ground against dollar on Tuesday, settling at 283.9 in inter-bank market and as market participants await resumption of International Monetary Fund (IMF) Extended Fund Facility (EFF), which has remained stalled since last year.

Experts say increase in inflows from workers’ remittances and decline in import payments have reduced demand for dollars. Globally, dollar steadied after it seesawed with bond market volatility as investors scrutinised US economic indicators, Federal Reserve commentary and corporate earnings for clues about path for interest rates. Doller index which gauges greenback against six major peers ticked up 0.11 percent to 101.83 in Asian trading, following a 0.36 percent slide on Tuesday that reversed 0.54 percent rally of session before.

Oil prices, key indicator of currency parity, dropped on Wednesday as market weighed potential interest rate hikes from Federal Reserve that could slow growth and dampen oil consumption, offsetting falling US inventories and strong Chinese economic data.

Published in The Daily National Courier, April, 20 2023

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