Pakistani Rupee gets an unexpected jolt

Pakistani Rupee gets an unexpected jolt

In a significant development, the Pakistani rupee experienced substantial losses against the US dollar, declining by 1.16 percent in the inter-bank market on Wednesday. The State Bank of Pakistan (SBP) reported that the rupee settled at Rs280.29 after a noteworthy drop of Rs3.26 in the inter-bank market. This decline marked the end of the rupee's 28-session streak of appreciation, with the currency depreciating by 0.07 percent on Tuesday, settling at Rs277.03.

In a related development, data released by the Pakistan Bureau of Statistics (PBS) provided a positive note with a 2.52 percent year-on-year growth in large-scale manufacturing (LSM) after 11 months of subdued performance.

The devaluation of the rupee was attributed to increased demand for dollars to facilitate forthcoming foreign payments, and experts have characterized the previous rise in the US dollar's value as 'artificial.'

On the international front, the US dollar maintained its position on Wednesday despite facing challenges in making further gains.

This resilience was evident even in the wake of strong US retail sales data, as traders shifted their attention to upcoming Chinese growth figures and the escalating violence in the Middle East.