ISLAMABAD: The rupee continued its winning momentum against the US dollar on Monday, appreciating to the 213 level in the opening hours of trading in the inter-bank market.
At around 10:30 am, the rupee was being quoted at 213.01, an appreciation of Rs2.48 or 1.16% against the US dollar, during intra-day trading.
The rupee gained nearly 4% against the US dollar during the shortened previous week, extending its winning run to nine sessions to eventually close at 215.49 in the inter-bank market.
The rupee has made major gains since July 28 when it registered its all-time low of 239.94.
The winning run comes on the back of major developments over the International Monetary Fund (IMF) front, starting from the Washington-based lender’s statement on Pakistan completing its last prior action, exporters realising their proceeds, and a lower import bill that took pressure off persistently-falling foreign exchange reserves.
Moreover, it was learnt that Saudi Arabia plans to renew its $3-billion deposit in assistance to Pakistan, while also intending to provide $100 million per month for 10 months in petroleum products that would be granted as additional support.
The additional support would mean Pakistan’s funding gap, as the IMF calls it, has been covered after Saudi Arabia’s commitment.
The assurance will pave way for the IMF board’s approval at the end of the month.
Furthermore, UAE’s commitment to invest $1 billion in different sectors of the economy has also boosted market sentiment.
Meanwhile, oil prices, a key determinant of currency parity, dropped for a second session on Monday as weak China economic data triggered concerns about demand at the world’s largest crude importer while the head of the world’s top exporter, Saudi Aramco, said it was ready to ramp up output.
Brent crude futures fell 89 cents, or 0.9%, to $97.26 a barrel, while US West Texas Intermediate crude was at $91.27 a barrel, down 82 cents, or 0.9%, after a 2.4% drop in the previous session.