After three straight losses, the Pakistani rupee gained ground versus the US dollar on Thursday, rising 0.76% in the interbank market.
According to the State Bank of Pakistan (SBP), the currency closed at 287.20, a gain of Rs2.18.
On Wednesday, the rupee fell for the third consecutive session against the US dollar, falling 0.64% to close at 289.38.
In a significant move, the Senate on Wednesday enacted legislation authorising the establishment of a state-owned Pakistan Sovereign Wealth Fund to diversify the country’s economy and build wealth for future generations.
Globally, the US dollar was around a four-week high on Thursday, ignoring a reduction of the country’s credit rating, which threw doubt on the country’s fiscal prospects, and instead benefiting from robust private payrolls statistics.
The release of data on Wednesday indicating that US private payrolls increased more than expected in July bolstered the greenback, pointing to sustained labour market strength, which is likely to keep US rates higher for longer.
In the previous session, the dollar index reached its highest level since July 7. It was last at 102.56, not far from its high of 102.78 on Wednesday.
Oil prices, a crucial measure of currency parity, fell further on Thursday after falling dramatically from more than three-month highs the previous session, as a downgrading of the US government’s credit rating weighed on sentiment, while supply concerns gave support.
