In interbank trade versus the Pakistani Rupee, the US dollar appreciated eight paisas, to Rs278.45.
According to financial experts, the local unit is facing pressure due to the impending budget and the release of the Pakistan Economic Survey 2024, even if the central bank has lowered interest rates by 1.5 percent.
Effective from June 11, 2024, the policy rate will be 20.5 percent, as the State Bank of Pakistan Monetary Policy Committee (MPC) decreased it by 150 basis points on Monday.
While the notable drop in inflation since February was mostly expected, the MPC pointed out that the May outturn was stronger than projected.
Under a tight monetary policy stance and with fiscal consolidation supporting it, the Committee concluded that underlying inflationary pressures are also abating.
