KARACHI: In the inter-bank market on Wednesday, the Pakistani rupee exhibited resilience and gained 0.4% against the US dollar during the opening hours of trading.
At 10:10 am, the rupee was observed at 288.64, marking an increase of Rs1.16 compared to previous rates.
Just a day prior, on Tuesday, the rupee had displayed a similar positive trend by appreciating 0.37% and settling at 289.80 in the inter-bank market. This consistent uptick in value showcases a positive outlook for the Pakistani rupee.
Over the past few days, the rupee has maintained an upward trajectory, recovering impressively by over 6% since reaching a record low of 307.1 against the US dollar in the inter-bank market on September 5. This recovery reflects a strengthening position for the Pakistani currency.
On a global scale, the US dollar has been trading near a 10-month high against major currencies on Wednesday. This trend can be attributed to the sustained elevation of Treasury yields, hinting at the possibility of extended higher interest rates in the United States. Consequently, the yen has experienced a decline and is approaching a closely-watched intervention zone.
The US dollar index currently stands at 106.20, having peaked at a 10-month high of 106.26 in the previous session. Conversely, the euro has depreciated and remains near a six-month low, currently valued at $1.0569.
Moreover, oil prices, a significant indicator of currency parity, saw an increase of nearly $1 on Wednesday. This rise is attributed to market concerns about supply tightness heading into winter and the anticipation of a “soft landing” for the US economy, showcasing the interconnectedness of oil prices with currency dynamics.
