ISLAMABAD: Pakistan’s rupee maintained its winning momentum against the US dollar, and was up nearly 0.9% in the inter-bank market during the opening hours of trading on Tuesday.
At around 10:35am, the rupee was being quoted at 225.30, an appreciation of Rs1.99 or 0.88% against the greenback, during intra-day trading.
On Monday, Pakistan’s rupee had maintained its upward trajectory against the US dollar for the seventh straight session, closing at 227.29 after appreciating Rs1.16 or 0.51% in the inter-bank market.
Analysts have attributed the rupee’s recent gain to the return of Ishaq Dar, widely seen as an advocate of a strong rupee.
The newly-appointed finance minister on Monday even said that the country’s currency could strengthen to under 200 rupees to the US dollar.
“The rupee’s real value is below 200 (to $1), and, God willing, it will come below 200 (rupees),” Dar said in an interview with a local television channel.
He added that the rupee would be strengthened though government “policies” as the current rate was inflated due to speculation.
Internationally, the US dollar lost some support from a slide in Treasury yields overnight after local economic data showed a slowdown in manufacturing, hinting that aggressive Federal Reserve rate hikes are already being felt.
The dollar index, which measures the currency against six peers including sterling and the euro, was about flat at 111.55, not far from Monday’s low of 111.46, a level last seen on September 23.
Oil prices, a key determinant of currency parity, inched higher in early Asian trade on Tuesday, on expectations that OPEC+ may agree to a large cut in crude output when it meets on Wednesday but concerns about the global economy capped gains.