The Pakistani rupee fell 0.2% against the US dollar in the first few hours of intraday trading on Friday.
At 10:10 a.m., the rupee was trading at 276.98, down Re0.52 in the inter-bank market.
The rupee gained ground against the US dollar on Thursday, rising 0.37% to close at 276.46 in the interbank market.
The International Monetary Fund (IMF) deposited $1.2 billion into the State Bank of Pakistan (SBP) on Thursday, according to Finance Minister Ishaq Dar, providing another much-needed boost to an economy struggling from a dollar shortage and rampant inflation.
Globally, the US dollar held near 15-month lows on Friday, following a big drop overnight, as markets bet the Federal Reserve was nearing the end of its rate hike cycle due to falling inflation.
In the early Asian hours, the dollar index, which compares the US currency to six main rivals, hovered at 99.71, its lowest level since April 2022. The index is set to have its lowest week since November.
Data indicated on Thursday that US producer prices hardly climbed in June, and the annual increase in producer inflation was the smallest in nearly three years, as evidence accumulates that the world’s largest economy has entered a phase of lowering inflation.
Oil prices, a major measure of currency parity, were expected to rise for the third week in a row for the first time since April, climbing on Friday due to supply interruptions in Libya and Nigeria, as well as expectations of stronger demand for petroleum due to lowering US inflation.
