During the first hours of trading in the interbank market on Tuesday, the Pakistani rupee remained steady against the US dollar.
At 11:35 a.m., the rupee was trading at 285.42.
In the interbank market on Monday, the rupee fell to 285.42 or 0.09% down against the US dollar.
In a significant development, Nathan Porter, International Monetary Fund (IMF) Mission Chief to Pakistan, stated that the multilateral lender will continue its engagement with the Pakistani authorities, focusing on the restoration of proper foreign exchange market functioning, the passage of the fiscal year 2024 budget consistent with programme goals, and adequate financing to allow for a Board meeting before the current programme expires at the end of June.
According to Porter, resolving the current economic and financial issues will necessitate persistent governmental measures and reforms in order for Pakistan to re-establish strong and inclusive private-led growth.
Globally, the US dollar dipped against a basket of major currencies on Tuesday but remained close to a two-month high as a deal on the US debt ceiling bolstered risk sentiment, though the pact may face a bumpy path through Congress.
The dollar index, which compares the US currency to six major currencies, fell 0.125% to 104.17, dropping from a two-month high of 104.42 reached on Friday. The index is expected to end the month up 2.5%.
On Monday, a group of hard-right Republican senators announced their opposition to an agreement to raise the United States’ $31.4 trillion debt ceiling.
Oil prices, a crucial indicator of currency parity, dipped on Tuesday, giving up earlier gains, as doubts over the feasibility of the US debt ceiling agreement dampened the market’s risk-on mood and confusing comments from major producers muddied the supply outlook ahead of their conference this weekend.