The rupee registered back-to-back gains against the US dollar, appreciating 0.04% in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee closed at 279.98, a gain of Re0.12 against the greenback.
On Wednesday, the rupee registered a gain as well as it settled at 280.1 against the US dollar, according to the SBP.
A number of positive economic developments on the local front occurred on Wednesday.
The United Arab Emirates (UAE) rolled over its $2 billion deposits with Pakistan for another one year to support the country’s foreign exchange reserves, while the International Monetary Fund (IMF) also released $ 705 million loan tranche to Pakistan, the SBP said.
Pakistan last week requested the UAE for the rollover of $ 2 billion deposits to avert depletion in foreign exchange reserves of the country.
Moreover, the country’s current account posted a surplus of $397 million in December, while foreign direct investment (FDI) surged by 35% in first half of FY24.
Globally, the US dollar held close to a one-month peak versus major peers on Thursday after robust US retail sales data overnight added to building expectations the Federal Reserve will not rush to lower interest rates.
The US dollar index, which measures the currency against a basket of six rivals, traded little changed at 103.36 in the Asian morning, after reaching 103.69 on Wednesday for the first time since Dec. 13.
Traders have trimmed the odds of a first Fed rate cut by March to 53.8%, down from 63.1% on Tuesday, according to CME’s FedWatch Tool.