Intra-day update: rupee’s appreciation run against US dollar continues
The Pakistani rupee continued to appreciate against the US dollar, gaining another 0.49% during the opening hours of trading in the inter-bank market on Tuesday. At 10:20am, the rupee was hovering at 294.50, an increase of Rs1.45, in the inter-bank market. On Monday, the rupee had appreciated 0.3% to settle at 295.95. The rupee has been on a merry run in recent days, strengthening after it hit a record low of 307.1 in the inter-bank market. The change in fortune comes as authorities introduced reforms in the Exchange Companies’ (ECs) sector and reportedly also cracked down on smuggling, lending support to the currency markets. The development slightly improves the outlook that had come under pressure over the ease in import restrictions that caused the current account deficit to widen in July. “We expect PKR/USD in inter-bank market to be in the range of Rs320-340 by June 2024,” said Topline Securities in a report recently. Globally, the US dollar edged broadly lower, though strayed not too far from a six-month peak hit against its major peers last week ahead of the Fed’s interest rate decision on Wednesday. The dollar index slipped 0.04% to 105.04. Money markets expect the Fed to keep rates on hold at its upcoming meeting, according to the CME FedWatch tool, though focus will be on the central bank’s forward guidance. “The market is fully pricing in a hold and this meeting was always likely to be a pass since the Fed skipped June, effectively moving to an every-other-meeting cadence,” said Erik Weisman, chief economist and portfolio manager at MFS Investment Management. Oil prices, a key indicator of currency parity, rose on Tuesday for the fourth consecutive session, as weak shale output in the US spurred further concerns about a supply deficit stemming from extended production cuts by Saudi Arabia and Russia. This is an intra-day update
Karobar
The Pakistani rupee continued to appreciate against the US dollar, gaining another 0.49% during the opening hours of trading in the inter-bank market on Tuesday.
At 10:20am, the rupee was hovering at 294.50, an increase of Rs1.45, in the inter-bank market.
On Monday, the rupee had appreciated 0.3% to settle at 295.95.
The rupee has been on a merry run in recent days, strengthening after it hit a record low of 307.1 in the inter-bank market. The change in fortune comes as authorities introduced reforms in the Exchange Companies’ (ECs) sector and reportedly also cracked down on smuggling, lending support to the currency markets.
The development slightly improves the outlook that had come under pressure over the ease in import restrictions that caused the current account deficit to widen in July.
“We expect PKR/USD in inter-bank market to be in the range of Rs320-340 by June 2024,” said Topline Securities in a report recently.
Globally, the US dollar edged broadly lower, though strayed not too far from a six-month peak hit against its major peers last week ahead of the Fed’s interest rate decision on Wednesday.
The dollar index slipped 0.04% to 105.04. Money markets expect the Fed to keep rates on hold at its upcoming meeting, according to the CME FedWatch tool, though focus will be on the central bank’s forward guidance.
“The market is fully pricing in a hold and this meeting was always likely to be a pass since the Fed skipped June, effectively moving to an every-other-meeting cadence,” said Erik Weisman, chief economist and portfolio manager at MFS Investment Management.
Oil prices, a key indicator of currency parity, rose on Tuesday for the fourth consecutive session, as weak shale output in the US spurred further concerns about a supply deficit stemming from extended production cuts by Saudi Arabia and Russia.
This is an intra-day update
