The Pakistani rupee depreciated by 0.03% against the US dollar during Tuesday’s trading session on the interbank market.
The rupee was depreciating by Re0.07 at 230.22 as of 12:40 p.m. during intraday trade.
The rupee fell against the US dollar on Monday for the 24th straight session, ending the day at 230.15, down Re0.48 (0.21%).
The State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) declared on Monday that the interest rate would increase by 100 basis points to 17%, in accordance with market expectations. Since October 1997, the main policy rate has never been higher than it is now.
The SBP added that it has concluded its probe into the country’s accused commercial banks’ manipulation of currency rates and will announce its decision in a matter of “days” following consultations on whether to pursue the apparent penalty from a regulatory or fiscal perspective.
Additionally, due to violations of regulatory directives, the central bank immediately suspended the authorization of eleven outlets of eight Exchange Companies for a period of seven to fifteen days. According to the SBP, no business activity of any type may be conducted at any of the eleven shops during the suspension period.
Globally, the dollar was on the back foot on Tuesday, hovering near a nine-month low to the euro and giving back recent gains against the yen, as traders continued to gauge the risks of a US recession and the path for Federal Reserve policy.
The US dollar index, which compares the value of the dollar to six other currencies, including the euro and yen, fell 0.09% to 101.92, closing down on the 7-1/2-month low of 101.51 set on Wednesday.
A market centered on expectations of a demand recovery from top importer China and on the global economic outlook ahead of company reports on Tuesday saw a small increase in oil prices, a crucial sign of currency parity.