The Pakistani rupee appreciated by almost 0.07% against the US dollar during the first hours of trade in the interbank market on Friday.
At 11:45 a.m., the rupee was trading at 285.42, or Re0.20 higher.
The improvement comes after the currency lost ground against the US dollar for the second consecutive day, ending at 285.62 in the interbank market on Thursday.
Due to external debt repayment, Pakistan’s central bank’s foreign exchange reserves fell by $72 million to $4.312 billion at the end of last week.
The country’s total liquid foreign exchange reserves were $9.938 billion as of May 12, 2023, down from $9.99 billion on May 5, 2023, a $53 million decrease.
Separately, data show that the government borrowed $8.123 billion from various financing sources, including $900 million from foreign commercial banks, during the first ten months of the fiscal year 2022-23, compared to $13.033 billion borrowed during the same period last fiscal year, a 37.7% decrease.
Internationally, the US dollar strengthened to almost a six-month high against the yen on Friday, supported by rising US Treasury yields and anticipation of higher-for-longer interest rates in Washington.
President Joe Biden and top US congressional Republican Kevin McCarthy reiterated earlier this week their determination to reach an agreement to raise the government’s $31.4 trillion debt ceiling as soon as possible, with hopes of reaching an agreement after Biden returns from the Group of Seven meeting in Japan on Sunday.
The US dollar index was recently at 103.46, nearing Thursday’s two-month high of 103.63, and was on track for a second consecutive weekly rise of more than 0.7%.
Oil prices, a major measure of currency parity, rose on Friday after falling more than 1% the previous day, as investors were cautiously hopeful about the possibility of a US debt default vanishing.
