Intra-day update: rupee remains largely stable against US dollar

The Pakistani rupee appreciated 0.01% against the US dollar during the first hours of trading in the interbank market on Tuesday.

Around 10:40 a.m., the rupee was trading at 284.95, up Re0.02.

The increase comes after the rupee remained relatively constant versus the US dollar on Monday, closing at 284.97 in the inter-bank market.

According to the Pakistan Bureau of Statistics (PBS), the output of the Large Scale Manufacturing Industry (LSMI) fell by 8.11% from July to March 2022-23 compared to the same period last year.

Separately, Roshan Digital Account (RDA) inflows have surpassed $6 billion for the first time since its inception.

According to the State Bank of Pakistan (SBP), RDA inflows increased by $136 million in April 2023. Since its inception, total investment in the RDA has increased to $6.102 billion by the end of April 2023, up from $ 5.966 billion in March 2023.

The US dollar remained under pressure globally on Tuesday, pushed down by the danger of a US default as the deadlock between Democrats and Republicans over extending the debt ceiling showed little indications of resolution.

The dollar gained last week by both safe-haven demand despite disappointing Chinese economic data and an unexpected increase in US consumer inflation expectations, reintroducing the probability of a June Federal Reserve rate hike.

The US dollar index, which measures the currency against a basket of six major peers, was barely changed at 102.46, down 0.26% from its five-week high.

Oil prices, a major measure of currency parity, surged for a second day on Tuesday, boosted by the United States plans to acquire oil for its Strategic Petroleum Reserve (SPR) and raging wildfires in Canada, which fueled supply concerns.