Rupee sees 15th successive session of appreciation, closes below 290 against US dollar
- Local currency has gained 6% since it hit record low of 307.1 in inter-bank market on Sept 5
The Pakistani rupee continued to strengthen against the US dollar, gaining 0.37% in the inter-bank market on Tuesday. This is the rupee’s 15th successive increase against the greenback.
As per the State Bank of Pakistan (SBP), the rupee settled at 289.80 after an increase of Rs1.06 in the inter-bank market.
On Monday, the rupee had appreciated 0.31% to settle at 290.86.
The rupee has maintained its upward trajectory in recent days and recovered over 6% since hitting a record low of 307.1 against the US dollar in the inter-bank market on September 5.
Internationally, the US dollar stood by 10-month highs against a basket of major currencies on Tuesday, supported by US bond yields scaling 16-year peaks, while the yen tiptoed deeper into the intervention danger zone.
A combination of resilient economic data, hawkish Federal Reserve rhetoric and a budget deficit to be financed by borrowing has the 10-year Treasury yield up more than 45 basis points in September to top 4.5% for the first time since 2007.
Rates markets are priced for an almost 40% risk of another Fed hike this year, against slimmer chances for another rise in Europe, and the difference has helped prop up a dollar many had bet would swiftly fall once short-term rates peaked.
Oil prices, a key indicator of currency parity, fell on Tuesday amid concerns that fuel demand will be crimped by major central banks holding interest rates higher for longer, even with supply expected to be tight.
Inter-bank market rates for dollar on Tuesday
BID Rs 289.80
OFFER Rs 290.00
Open-market movement
In the open market, the PKR gained 2.00 rupees for both buying and selling against USD, closing at 288.00 and 291.00, respectively.
Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 309.00 and 312.00, respectively.
Against UAE Dirham, the PKR gained 50 paisa for both buying and selling, closing at 81.00 and 81.80, respectively.
Against Saudi Riyal, the PKR gained 20 paisa for buying and 30 paisa for selling, closing at 76.80 and 77.50, respectively.
Open-market rates for dollar on Tuesday
BID Rs 288.00
OFFER Rs 291.00
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