Intra-day update: rupee gains further ground against US dollar

The Pakistani rupee continued to strengthen against the US dollar, gaining 0.46% during trading in the inter-bank market on Monday. At 12:30pm, the rupee was hovering at 281.40, an increase of Rs1.29, in the inter-bank market. Last week, the Pakistani rupee gained 1.8% during the five sessions to close at 282.69 against the US dollar in the inter-bank market. The gains took the winning streak to 22 sessions, and helped the rupee close at its highest level since July. At the same time, the gap with rates in the open market narrowed to negligible levels, meeting a key condition of the programme with the International Monetary Fund (IMF). The increase has come on the back of administrative measures including a crackdown on smuggling and structural reforms in the Exchange Companies’ sector. Meanwhile, during the previous week, the Ministry of Finance asked all ministries to implement all the IMF as the first review under the Standby Arrangement (SBA) becomes due. Globally, the safe-haven US dollar edged higher on Monday as violence in the Middle East spooked markets, while a blowout US jobs report gave the greenback a further leg up. The dollar index was last 0.11% higher at 106.21, drawing additional support from Friday’s data showing US employment increased by the most in eight months in September, potentially setting up for a higher-than-expected inflation print later this week. Oil prices, a key indicator of currency parity, jumped more than $4 a barrel in early Asian trade on Monday, as dramatic military clashes between Israeli and Hamas forces over the weekend deepened political uncertainty across the Middle East. This is an intra-day update