The Pakistani rupee maintained its upward trajectory against the US dollar for the 14th successive session, gaining another 0.31% in the inter-bank market on Monday.
As per the State Bank of Pakistan (SBP), the rupee settled at 290.86 after an increase of Re0.9 in the inter-bank market.
The rupee has maintained its merry run in recent days and recovered 5.28% or Rs16.24 since hitting a record low of 307.1 against the US dollar in the inter-bank market on September 5.
During the previous week, the rupee appreciated another 1.74%, closing positive in all five sessions to settle at 291.76 against the US dollar on Friday.
The rupee’s rate in the open market has also become stronger, reducing the ‘premium’ to negligible values and meeting the benchmark set by the International Monetary Fund (IMF).
While many experts say the rupee’s appreciation is on the back of administrative and enforcement measures, some believe the gain reflects the currency’s fundamental value if ‘speculation’ and negative sentiment were to be kept aside.
“PKR gained over 5.3%, or Rs15.3 against USD in the last thirteen consecutive trading sessions due to strict measures against Afghan transit and hawala,” said Shahid Ali Habib, CEO of brokerage house Arif Habib Limited (AHL) in a post on social media platform X on Saturday.
“We expect PKR to further gain in coming days to at least reach Rs278-280 against USD, if these positive measures continue like this and some external flows materialise timely,” added Habib.
Globally, the US dollar was on the front foot in the broader currency market, extending its gains from last week after a still-hawkish Federal Reserve surprised markets by signalling US rates would need to stay higher for longer than initially expected.
Fed officials had on Friday warned of further rate hikes ahead even after the central bank chose to keep rates on hold at last week’s policy meeting, with markets now seeing a roughly 21% chance of a 25-basis-point increase at November’s meeting.
The dollar index, which on Friday touched an over six-month high, firmed at 105.57 in early Asia trade.
Oil prices, a key indicator of currency parity, rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.
Inter-bank market rates for dollar on Monday
BID Rs 290.85
OFFER Rs 291.05
Open-market movement
In the open market, the PKR gained 50 paisa for both buying and selling against USD, closing at 290.00 and 293.00, respectively.
Against Euro, the PKR gained 2.00 rupees for both buying and selling, closing at 310.00 and 313.00, respectively.
Against UAE Dirham, the PKR gained 50 paisa for both buying and selling, closing at 81.50 and 82.30, respectively.
Against Saudi Riyal, the PKR gained 1.00 rupee for buying and 90 paisa for selling, closing at 77.00 and 77.80, respectively.
Open-market rates for dollar on Monday
BID Rs 290.00
OFFER Rs 293.00