On Thursday in the interbank market, the US dollar depreciated by 17 paisas, settling at Rs278.30. This slight decline is attributed to ongoing economic adjustments and market responses to both domestic and international financial dynamics.
Simultaneously, the Karachi Stock Exchange experienced fluctuations, with the KSE-100 index trading down by 7 points, closing at 74,950 points at the start of business for the day. Market analysts attributed the minor dip to investor caution and mixed signals from global markets.
The 17-paisa depreciation of the dollar is seen as a response to recent measures by the State Bank of Pakistan aimed at stabilizing the currency market. Economists suggest that such fluctuations are typical as the market adjusts to new financial policies and external economic factors.
Reflecting investor sentiments, the KSE-100 index’s seven-point drop indicates a cautious trading environment, with participants closely monitoring both local economic indicators and international financial developments.
The day prior, the currency markets saw the US dollar slightly strengthen against the Pakistani rupee. In the interbank market, the dollar rose by 8 paisas, reaching Rs278.47. Similarly, in the open market, the dollar increased by 11 paisas, bringing it to Rs279.54.
Meanwhile, the Pakistan Stock Exchange (PSX) ended negatively, falling below the critical threshold of 75,000 points. The benchmark KSE-100 index dropped by 250 points, closing at 74,956 points, reflecting investor concerns and market volatility.
In other developments, policy-level talks between Pakistan and the International Monetary Fund (IMF) are underway, focusing on crucial economic reforms, particularly in the gas sector. Sources indicate that discussions include a comprehensive review of tariff adjustments, measures to reduce revolving debt, and broader energy sector reforms. A significant increase in gas tariffs is likely from August, impacting sectors such as domestic consumers, fertilizer production, CNG stations, and the cement industry.