The Pakistani rupee strengthened against the US dollar, gaining 0.5% during trade on Wednesday.
At 11:50 a.m., the rupee was trading at 286.50, up Rs1.41 in the interbank market.
The Pakistani rupee fell more against the US dollar on Tuesday, falling 0.17% to 287.91.
The Economic Coordination Committee (ECC) approved the revised features of the SME Asaan Finance (SAAF) scheme proposed by the State Bank of Pakistan (SBP) on Tuesday, with a risk-sharing facility of Rs12 billion for the government, with Rs4 billion for 2023-24 and Rs7 billion for 2024-25.
Internationally, the US dollar maintained its lead in Asia on Wednesday, holding on to overnight gains versus key peers as investors sought the currency’s safety amid threats posed by a faltering Chinese economy and downgrade for US banks.
Worries about the global economy resurfaced on Tuesday when statistics indicated that Chinese imports and exports contracted more than expected in July.
Consumer prices in China fell for the first time in more than two years in July, fueling deflation fears, according to data released on Wednesday, though the 0.3% drop was significantly less than predicted in a Reuters poll.
The US dollar index, which compares the US currency to the euro, yen, and four other currencies, was little changed at 102.50 in the Asian morning, after rising 0.47% the previous session.
Oil prices, a major barometer of currency parity, fell in Asian morning trade on Wednesday as concerns about slowing demand from top crude importer China rose following gloomy trade and inflation statistics, outweighing concerns about tighter supply caused by Saudi Arabia and Russia cutting output.