Rupee extends winning streak against US dollar in inter-bank market
- Local currency has now appreciated for 24 successive sessions
- Has cumulatively gained 9.5% since it hit a record low of 307.1 in inter-bank market on Sept 5
The Pakistani rupee’s merry run continued against the US dollar, as it appreciated another 0.41% in the inter-bank market on Tuesday. This is the rupee’s 24th consecutive gain against the greenback, and makes it one of the longest appreciation runs in history.
As per the State Bank of Pakistan (SBP), the rupee settled at 280.51 after an increase of Rs1.14 in the inter-bank market.
On Monday, the rupee had appreciated 0.37% to settle at 281.65.
This is one of the longest appreciations runs seen by the rupee against the US dollar in the inter-bank market, and comes in large part due to the authorities’ crackdown on smuggling and hoarding of foreign currency as well as reforms in the Exchange Companies’ sector.
Internationally, the US dollar softened on Tuesday along with US interest rate expectations and a fall in Treasury yields as investors detected a slight dovish shift in Federal Reserve officials’ tone.
The US dollar retreated as the 10-year Treasury yield eased to 4.63% in Asian trading hours, after hitting a 16-year high of 4.88% last week.
However, comments from two Fed officials turned around the mood and U.S. rate forecasts overnight after noting the recent selloff in bonds might negate the need for further hikes.
The global dollar index fell to 106.067 from the previous close of 106.083.
Oil prices, a key indicator of currency parity, eased on Tuesday after rallying more than 4% in the previous session, with traders cautious as they watched for potential supply disruptions amid military clashes between Israel and the Palestinian group Hamas.
Inter-bank market rates for dollar on Tuesday
BID Rs 280.50
OFFER Rs 280.70
Open-market movement
In the open market, the PKR gained 50 paisa for both buying and selling against USD, closing at 277.00 and 280.00, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 293.00 and 296.00, respectively.
Against UAE Dirham, the PKR gained 70 paisa for both buying and selling, closing at 75.50 and 76.20, respectively.
Against Saudi Riyal, the PKR gained 60 paisa for both buying and selling, closing at 73.50 and 74.20, respectively.
Open-market rates for dollar on Tuesday
BID Rs 277.00
OFFER Rs 280.00
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