IMF Official Urges Action on Pakistan's Inflation Woes

The Pakistani rupee experienced a slight depreciation of 0.01% against the US dollar in the inter-bank market on Thursday, settling at 278.44. This minor loss of Re0.04 compared to the previous day's closing rate was reported by the State Bank of Pakistan (SBP). The SBP had noted a similar marginal decline the day before, with the rupee closing at 278.40 against the US dollar. An IMF official highlighted the need for further measures to address inflation in Pakistan, despite recent efforts to tighten monetary policy.

Internationally, the US dollar showed signs of weakness as traders analyzed the Federal Reserve's stance on interest rates. Strong US economic data and concerns about inflation had previously boosted the dollar, leading to expectations of sustained monetary tightening. Geopolitical tensions in the Middle East also contributed to the dollar's appeal as a safe-haven asset.

Oil prices remained relatively stable following a recent drop, reflecting ongoing concerns about global demand and geopolitical risks. Brent futures saw a slight increase, while US West Texas Intermediate (WTI) crude futures also edged higher.

In the open market, the Pakistani rupee faced fluctuations against major currencies. Notably, the PKR lost ground against the US dollar but gained marginally against the UAE Dirham. However, it experienced losses against the Euro and Saudi Riyal.

In conclusion, the currency markets continue to be influenced by a combination of domestic and international factors, with traders closely monitoring economic indicators and geopolitical developments for potential impacts on exchange rates.