The Pakistani rupee stayed mostly constant against the US dollar, rising approximately 0.04% during the first hours of interbank trading on Tuesday.
At 10:30 a.m., the rupee was trading at 286.45, or Re0.11 higher.
The minor rise comes after the rupee fell against the US dollar for the fourth straight session, closing at 286.56 on Monday.
In a significant step, the Federal Board of Revenue’s (FBR) tax collection target for 2023-24 would be set between Rs 9 trillion and Rs 9.2 trillion.
According to sources, the tax projections for 2023-24 will be finalized in light of the FBR’s huge shortfall in revenue collection during 2022-23. Certain withholding taxes and sales tax/excise duty rates will be hiked further in the upcoming budget (2023-24).
Internationally, the US dollar hit a six-month high against the yen on Tuesday, as expectations grew that US interest rates would remain higher for longer, while the debt ceiling deadlock left risk sentiment shaky.
Some of the Federal Reserve’s heavyweights who spoke on Monday signaled that the central bank has further to go in tightening monetary policy.
The dollar index increased slightly overnight after St. Louis Fed President James Bullard stated that the Federal Reserve may need to boost its benchmark interest rate by another half-point this year.
Oil prices, a crucial measure of currency parity, rose further on Tuesday, with investors anticipating a tighter market due to seasonal increases in petrol consumption and supply cuts from OPEC+ countries, however, concerns about a US debt default limited gains.
