The Pakistani rupee opened with a small loss versus the US dollar, falling approximately 0.31% in the inter-bank market during the early hours of trading on Wednesday, following a five-day break due to Eid vacations.
Around 10:30 a.m., the currency was trading at 284.35, down Re0.88.
The development comes after the rupee regained its upward momentum against the US dollar last Thursday, settling at 283.47 in the inter-bank market, and as market participants continue to await the resumption of the International Monetary Fund’s (IMF) Extended Fund Facility (EFF), which has been stalled since last year.
Finance Minister Ishaq Dar stated once more that the government has met all of the IMF’s conditions for reviving the loan deal.
Internationally, the US dollar was relatively stable after rising overnight as increased concerns about the US banking industry and economy dampened risk appetite.
The dollar index, which measures the currency against six main rivals, rose 0.01% to 101.80 after rising 0.5% overnight. For the month, the index is down 0.76%.
Fresh economic data weighed on morale as well. Consumer confidence in the United States fell to a nine-month low in April, according to statistics released tonight, raising the possibility that the economy may enter a recession this year.
Oil prices reached on Wednesday after falling more than 2% the previous day, as reports of declining US crude oil and fuel stocks refocused investors on healthy demand in the world’s biggest oil consumer.
