The rupee managed to expand further ground against the dollar on the money market on Monday, dealers said.
Commenting on the rupee's performance, president, Forex Association of Pakistan (FAP) Malik Bostan said that first time in the history of Pakistan the Pak rupee recovered around Rs 6 versus the dollar in the inter-bank market. During the session, at a time, the rupee traded at Rs 122.45 in terms of the dollar.
It came under observation the rupee devalued sharply against the dollar but it never re-valued steeply, he added. Now with the improvement of dollars' flow, the domestic currency will settle its position in terms of the dollar in the coming days, he said.
In the first Asian trade, the dollar was steady against its peers on Monday, sticking to a tight range as market participants awaited key central bank meetings this week that could set the near-term course for currencies.
Central banks in focus include the Bank of Japan, which ends a two-day meeting on Tuesday, and the Federal Reserve, which concludes its policy meeting on Wednesday. The Bank of England also makes a policy decision on Thursday.
The dollar index against a basket of six major currencies stood little changed at 94.720, after dipping slightly on Friday. Upbeat second quarter US gross domestic product data failed to lift the greenback, as markets had mostly priced in strong figures.
The US currency was 0.01 percent higher at 111.125 yen following a loss of about 0.2 percent on Friday.
Masafumi Yamamoto, chief forex strategist at Mizuho Securities in Tokyo, said investors will be more interested in US GDP data that incorporates July, which is when tariffs against Chinese goods were activated.
"On the other hand, the two-year Treasury yield is rising, underscoring strong rate hike expectations in the market. This is limiting the dollar's losses, although movements are likely to be limited ahead of the BOJ meeting," Yamamoto said.
The two-year Treasury yield rose to a decade-high of 2.69 percent towards the end of last week.
The financial markets are keen to see whether the BOJ is considering taking steps to make its massive stimulus programme more sustainable.
Speculation on what the BOJ might do includes possibly adjusting its yield-curve control and exchange-traded fund (ETF) buying schemes. The dollar has eased back from a six-month high above 113.00 yen scaled on July 19 amid such speculation.
The dollar was available against the Indian rupee at Rs 68.730, the US currency was at 4.063 in terms of the Malaysian ringgit and the greenback available at 6.834 versus the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 83.75-83.75 (Previous 83.75-83.75).

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Open Bid       Rs.118.00
Open Offer     Rs.123.00
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Bid Rate       Rs.124.25
Offer Rate     Rs.124.75
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