The Pakistani rupee strengthened against the US dollar, gaining roughly 0.1% during the first hours of trade in the interbank market on Thursday.
At around 11 a.m., the rupee was trading at 285.20, up Re0.27.
In the interbank market on Wednesday, the rupee fell marginally to settle at 285.47, or 0.04% lower against the US dollar.
In a significant development, Minister of State for Finance Aisha Ghaus Pasha stated on Wednesday that the prime minister and the Ministry of finance remain fully committed to the International Monetary Fund (IMF) programme, adding that “we are not thinking anything else.”
The restart of the IMF programme, which has been on hold since November of last year, is critical for the cash-strapped economy.
Internationally, the US dollar fell from a two-week high against its main counterparts on Thursday as investors reduced their bets that the Federal Reserve will raise interest rates this month, despite the fact that the nearing debt ceiling deadline gave the greenback safe-haven support.
On Wednesday, a divided US House of Representatives passed a bill suspending the $31.4 trillion debt ceiling, with the emphasis now shifting to how it will fare in the Democratic-led Senate just days before the federal government is due to run out of money to pay its obligations.
The US dollar index increased 0.06% to 104.21, but it was still down from a more than two-month high achieved the previous session, as traders reduced their expectations of another Federal Reserve rate hike this month.
Oil prices, a crucial measure of currency parity, fell for the third straight session in early trade on Thursday after data indicated an unexpectedly big gain in US oil stocks last week, raising fears of an oversupply amid signs of lower Chinese demand.
