In a significant development, the Pakistani rupee experienced substantiallosses against the US dollar, declining by 1.16 percent in the inter-bankmarket on Wednesday. The State Bank of Pakistan (SBP) reported that therupee settled at Rs280.29 after a noteworthy drop of Rs3.26 in theinter-bank market. This decline marked the end of the rupee’s 28-sessionstreak of appreciation, with the currency depreciating by 0.07 percent onTuesday, settling at Rs277.03.
In a related development, data released by the Pakistan Bureau ofStatistics (PBS) provided a positive note with a 2.52 percent year-on-yeargrowth in large-scale manufacturing (LSM) after 11 months of subduedperformance.
The devaluation of the rupee was attributed to increased demand for dollarsto facilitate forthcoming foreign payments, and experts have characterizedthe previous rise in the US dollar’s value as ‘artificial.’
On the international front, the US dollar maintained its position onWednesday despite facing challenges in making further gains.
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This resilience was evident even in the wake of strong US retail salesdata, as traders shifted their attention to upcoming Chinese growth figuresand the escalating violence in the Middle East.