State Bank of Pakistan reports on currency market trends

The Pakistani rupee experienced a slight decline of 0.04% against the US dollar in the inter-bank market, closing at 278.40. This follows a trend from the previous day when the rupee settled at 278.29 against the greenback. The State Bank of Pakistan (SBP) reported these figures, highlighting the ongoing challenges faced by the local currency.

On the economic front, the International Monetary Fund (IMF) has projected Pakistan's GDP growth rate to reach 2% for the current fiscal year, a significant improvement from the -0.2% recorded in the previous fiscal year. Additionally, the IMF forecasts a decrease in inflation from 29.2% to 24.8% and a slight reduction in unemployment from 8.5% to 8%.

Internationally, the US dollar remained stable, impacting global currency markets. The Federal Reserve's indication of maintaining higher interest rates for an extended period has influenced market sentiments. This stance has led to a cautious approach among investors, with expectations for interest rate cuts diminishing.

Oil prices faced downward pressure due to concerns over higher US commercial inventories and weaker economic data from China. Brent futures for June dipped to $89.81 a barrel, while US crude futures for May fell to $85.17 a barrel. Geopolitical tensions, particularly the recent Iran-Israel conflict, have also influenced oil market dynamics.

In the open market, the Pakistani rupee showed strength against major currencies. Against the US dollar, the rupee gained 9 paisa for buying and 11 paisa for selling, closing at 277.07 and 279.57, respectively. Similarly, the rupee appreciated against the Euro, UAE Dirham, and Saudi Riyal, reflecting positive market sentiment.

In conclusion, the currency markets continue to be influenced by a combination of domestic and international factors, with the Pakistani rupee showing resilience amidst global economic uncertainties.