The Pakistani rupee fell for the fourth consecutive session, falling 0.11% against the US dollar in the interbank market on Wednesday.
According to the State Bank of Pakistan (SBP), the currency closed at 286.88, down from Re0.32.
On the open market, however, the PKR gained significantly versus the USD on Wednesday.
The US dollar was trading in the open market in the range of 297-300, down from a range of 300-303 on Tuesday.
On Tuesday, the rupee continued its downward trend against the US dollar for the third consecutive session, closing at 286.56, or 0.13% down in the interbank market.
In a significant shift, Pakistani authorities are now optimistic about reaching an agreement with the International Monetary Fund (IMF) before releasing the budget on June 9 (Friday), according to the Ministry of Finance in an emailed answer to inquiries from Bloomberg.
According to the government, Pakistan has secured $4 billion in external finance and wants to reach an agreement with the lender before releasing its budget on Friday.
Separately, the National Economic Council (NEC) approved an Rs1,150 billion federal development budget and set a 3.5% GDP growth target for the following fiscal year 2023-24.
The National Economic Council (NEC) presented the Annual Development Plan (ADP) for the forthcoming fiscal year (2023-24), with a total budget of Rs2.709 trillion.
Internationally, the US dollar moved lower on Wednesday as traders assessed the likelihood of a Federal Reserve rate hike next week, while the Australian dollar hit a new three-week high following a rate hike and a markedly hawkish attitude by its central bank.
In the global currency market, the US dollar fell in early Asian trade as traders reduced their expectations of a rate hike at the FOMC meeting next week.
The US dollar index fell 0.03% to 104.05, while the euro increased 0.07% to $1.0698.
Oil prices, a major measure of currency parity, fell for a second day on Wednesday as fears about global economic headwinds intensified, wiping out price gains made following Saudi Arabia’s surprise weekend commitment to deepen supply cutbacks.