Intra-day update: Rupee Makes Gains, Inches Closer to US Dollar

The Pakistani rupee strengthened more against the US dollar on Wednesday, gaining roughly 0.5% during interbank trading.

At roughly 2:15 p.m., the rupee was trading at 277.25, up Rs1.32.

The Pakistani rupee recovered on Tuesday, rising 0.44% to 278.57 in the interbank market.

On Wednesday (July 12), the International Monetary Fund's Executive Board will also approve a $9-month stand-by agreement (SBA) of $3 billion for Pakistan.

According to the IMF Executive Board calendar, the next sessions are scheduled for July 12, 13, 17, 19, and 20, 2023; however, Pakistan was not on the agenda at the time this article was filed.

According to sources, the Board would consider Pakistan's plea on Wednesday.

Globally, the US dollar fell to a two-month low against its main counterparts on Wednesday ahead of a crucial US inflation figure, while sterling rose to a 15-month high on predictions that the Bank of England (BoE) will raise interest rates further.

US inflation data is anticipated later on Wednesday, with core consumer prices expected to rise 5% year on year in June.

The US dollar sank to a two-month low of 101.45 versus a basket of currencies ahead of the publication, extending losses from the beginning of the week as Fed officials signalled the central bank was nearing the end of its current monetary policy tightening cycle.

Oil prices, a crucial measure of currency parity, edged higher on Wednesday, extending gains for a second session, as anticipated production curbs by the world's largest oil exporters and expectations of greater demand in the developing world outweighed global economic concerns.