Rupee claws back some ground, settles at 285.74 against dollar
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Karachi: Rupee registered significant gain against dollar, appreciating 0.49 percent in inter-bank market.
At close, currency settled at 285.74, gain of Rs 1.39, as per State Bank of Pakistan (SBP). Increase comes after rupee registered marginal gain against dollar to settle at 287.13 or 0.01 percent on Wednesday.
Finance Minister Ishaq Dar reiterated that there is absolutely no risk of default. He assured business community that existing compliant taxpayers would not be further squeezed in upcoming budget (2023-24) and focus of budget would be on broadening tax base and document new taxpayers.
Globally, pushed to two-month high against euro and six-month peak versus yen on Thursday, as resilient US economy led traders to pare their bets on rate cuts this year. Greenback has also benefited from demand for safe havens, paradoxically as US debt ceiling impasse threatens disastrous default as soon as June 1, when Treasury has warned it would be unable to pay all its bills. US dollar index, which measures currency against six major peers including euro and yen touched two-month high of 104.01.
Oil prices, key indicator of currency parity, fell on Thursday after Russian Deputy Prime Minister Alexander Novak played down prospect of further OPEC+ production cuts at its meeting next week.
Published in The Daily National Courier, May, 26 2023
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