In the latest trading hours, the Pakistani rupee exhibited a slight uptick against the US dollar, appreciating by 0.21% in the inter-bank market on Friday.
At 10 am, the rupee was observed at 282.50, marking an increase of Re0.29.
This comes after a marginal gain on Thursday when the rupee settled at 282.79 against the US dollar.
Simultaneously, there is a concerning development in the foreign exchange reserves held by the State Bank of Pakistan (SBP). The reserves have fallen below $7 billion, witnessing a decrease of $136 million to $6.904 billion, primarily attributed to debt repayments during the week ending December 15, 2023.
Internationally, the US dollar is grappling near a more than four-month low, creating anticipation ahead of a key US inflation gauge reading scheduled for later in the day. This reading is expected to offer insights into the Federal Reserve's room for interest rate cuts in the coming year.
The US dollar's recent performance includes hitting a five-month trough against the New Zealand dollar and a three-week low against the euro in early Asia trade. This decline follows a sudden bout of risk aversion in New York hours on Wednesday, triggering a selloff in US stocks and a corresponding rise in the dollar.
Investor focus now turns to Friday's US core personal consumption expenditures (PCE) print, considered the Fed's preferred measure of underlying inflation. Analysts expect the core PCE price index to have risen by 3.3% on an annual basis, a slight moderation compared to October's 3.5%.
