The Pakistani rupee showed a small improvement against the US dollar on Friday, rising by 0.06% in the inter-bank market. It ended the day at 277.61, gaining Re0.18 from the previous day’s closing of 277.79, as reported by the State Bank of Pakistan (SBP).
In addition, the SBP’s foreign exchange reserves increased by $215 million this week, reaching $11.02 billion, which is the highest level in 2.5 years as of October 11, 2024.
Meanwhile, the US dollar is experiencing its third consecutive week of gains, boosted by a cautious European Central Bank and strong US economic data. On Friday, the dollar was trading at 149.93 yen.
US retail sales grew more than expected, and the European Central Bank lowered interest rates by 25 basis points. At the same time, markets were disappointed by the lack of clear plans from China to boost its slowing economy, causing the yuan to fall significantly.
Oil prices stabilized on Friday after reports showed a decrease in US crude and fuel inventories, along with new fiscal measures aimed at improving the Chinese economy. However, oil prices are on track for their biggest weekly drop in over a month, with Brent crude rising to $74.68 per barrel and US West Texas Intermediate at $70.96 per barrel.
