ISALAMABAD: Pakistan’s rupee was up over 0.7% against the US dollar in the inter-bank market during the opening hours of trading on Monday, continuing its winning run that began in the last week of September.
At around 10:45am, the rupee was being quoted at 226.70, an appreciation of Rs1.75 or 0.77% against the greenback, during intra-day trading.
During the previous week, the rupee gained nearly 5%, appreciating in value across all the five sessions against the US dollar as the return of Ishaq Dar at helm of Pakistan’s economic affairs gave impetus to a bullish sentiment in the money market.
The rupee closed at 228.45 in the inter-bank market on Friday, moving almost Rs11.2 higher as the US dollar index, which measures the greenback against the euro, sterling and four other major peers, also moved lower.
Analysts said the return of Dar, widely seen as an advocate of a strong rupee, and measures taken by the State Bank of Pakistan (SBP) also reduced speculation activity, evident also by the hefty gains posted by the local currency in the open market.
Moreover, the central bank in a move to promote documentation and transparency in the foreign exchange transactions, made it mandatory that Pakistan Rupee consideration of currency exchange (CE) transactions between Exchange Companies (ECs), Exchange Companies “B” category and franchises of Exchange Companies will be conducted through bank accounts.
Internationally, the dollar maintained its grip against other currencies. The US dollar index rose 0.06% to 112.30. So far this year, the dollar index has soared almost 17%.
Oil prices, a key indicator of currency parity, jumped more than 3% in early Asian trade on Monday, as OPEC+ considers cutting output by more than 1 million barrels a day for its biggest reduction since the pandemic, in a bid to support the market.