Tuesday, November 29, 2022

Dollar slightly moves down after yesterday’s surge

Dollar slightly moves down after yesterday’s surge
KARACHI (92 News) – The US dollar fell by Rs.85 to reach Rs159.20 in the interbank market on Wednesday as the trading is continuing for the day. The benchmark KSE-100 index increased 50 points to push up the index. On Tuesday, the US dollar rose in the interbank market, inching up by 1.04 paisa to reach Rs160.90. https://www.youtube.com/watch?v=88M5WI4hL-4 The rupee maintained downward drive for the seventh straight session ahead of the likely hike in key interest rate. The rupee further weakened Rs1.04 to Rs160.90 to the US dollar in intra-day trade in the inter-bank market. The benchmark KSE-100 index decreased 110 points to push down the index less than 33,150 points. The State Bank of Pakistan (SBP) is strongly expected to hike key interest rate by 100 basis points to rein the future inflation in the afternoon. Last week, Pakistan received the first tranche of a loan of $991.4 million from the International Monetary Fund (IMF) under the under Extended Fund Facility (EFF). According to the State Bank of Pakistan (SBP), following the loan from the IMF, the country’s foreign exchange reserves now stand at above $15.0431 billion. The interbank rate is the benchmark rate to determine the value of dollar and sets the direction for open market rates. Since the open market or cash market rate usually remains higher than the interbank rate, the open market is likely to follow a similar trend throughout the day. The final rates for both cash and interbank market are compiled in the evening when businesses close.