The Pakistani rupee strengthened marginally versus the US dollar in early Friday trading, rising 0.04% in the interbank market.
The currency was quoted at 283.70 at roughly 10:45 a.m., an increase of Re0.12.
On Thursday, the rupee gained slightly versus the US dollar, finishing at 283.82 in the interbank market.
The International Monetary Fund (IMF) is ready to examine Pakistan’s budget plans for the coming fiscal year as part of a process to unlock a critical finance injection for the cash-strapped government, according to the country mission leader of the IMF.
An IMF examination of the budget puts a new stumbling block in front of the lender’s approval of the release of pending bailout funds, which are critical for Pakistan to resolve an acute balance of payments problem. Since November, a staff-level agreement to disburse $1.1 billion has been postponed.
Globally, the US currency sank as speculators factored in more aggressive Federal Reserve rate cuts.
A widening crisis in US regional banks has investors on edge, with pressure mounting on US regulators to do more to shore up the sector.
PacWest Bancorp shares fell on Thursday, pushing down other regional lenders, as the Los Angeles-based bank’s proposal to investigate strategic options heightened investor concerns.
The dollar index fell 0.11% to 101.23 as a result, leaving the greenback generally down on Friday.
Oil prices, a crucial currency parity indicator, increased marginally in Asian morning trade on Friday, but were set for a third consecutive week of losses after markets saw huge dips on fears of a faltering US economy and declining Chinese demand.