Intra-day update: rupee’s merry run continues against US dollar
The Pakistani rupee maintained its winning momentum against the US dollar, gaining 0.33% during the opening hours of trading in the inter-bank market on Monday. At 10:10am, the rupee was hovering at 290.80, an increase of Re0.96, in the inter-bank market. During the previous week, the rupee appreciated another 1.74%, closing positive in all five sessions to settle at 291.76 against the US dollar in the inter-bank on Friday. The rupee’s rate in the open market has also become stronger, reducing the ‘premium’ to negligible values and meeting the benchmark set by the International Monetary Fund (IMF). While many experts say the rupee’s appreciation is on the back of administrative and enforcement measures, some believe the gain reflects the currency’s fundamental value if ‘speculation’ and negative sentiment were to be kept aside. “PKR gained over 5.3%, or Rs15.3 against USD in the last thirteen consecutive trading sessions due to strict measures against Afghan transit and hawala,” said Shahid Ali Habib, CEO of brokerage house Arif Habib Limited (AHL) in a post on social media platform X on Saturday. “We expect PKR to further gain in coming days to at least reach Rs278-280 against USD, if these positive measures continue like this and some external flows materialise timely,” added Habib. Globally, the US dollar was on the front foot in the broader currency market, extending its gains from last week after a still-hawkish Federal Reserve surprised markets by signalling US rates would need to stay higher for longer than initially expected. Fed officials had on Friday warned of further rate hikes ahead even after the central bank chose to keep rates on hold at last week’s policy meeting, with markets now seeing a roughly 21% chance of a 25-basis-point increase at November’s meeting. The dollar index, which on Friday touched an over six-month high, firmed at 105.57 in early Asia trade. Oil prices, a key indicator of currency parity, rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand. This is an intra-day update
Karobar
The Pakistani rupee maintained its winning momentum against the US dollar, gaining 0.33% during the opening hours of trading in the inter-bank market on Monday.
At 10:10am, the rupee was hovering at 290.80, an increase of Re0.96, in the inter-bank market.
During the previous week, the rupee appreciated another 1.74%, closing positive in all five sessions to settle at 291.76 against the US dollar in the inter-bank on Friday.
The rupee’s rate in the open market has also become stronger, reducing the ‘premium’ to negligible values and meeting the benchmark set by the International Monetary Fund (IMF).
While many experts say the rupee’s appreciation is on the back of administrative and enforcement measures, some believe the gain reflects the currency’s fundamental value if ‘speculation’ and negative sentiment were to be kept aside.
“PKR gained over 5.3%, or Rs15.3 against USD in the last thirteen consecutive trading sessions due to strict measures against Afghan transit and hawala,” said Shahid Ali Habib, CEO of brokerage house Arif Habib Limited (AHL) in a post on social media platform X on Saturday.
“We expect PKR to further gain in coming days to at least reach Rs278-280 against USD, if these positive measures continue like this and some external flows materialise timely,” added Habib.
Globally, the US dollar was on the front foot in the broader currency market, extending its gains from last week after a still-hawkish Federal Reserve surprised markets by signalling US rates would need to stay higher for longer than initially expected.
Fed officials had on Friday warned of further rate hikes ahead even after the central bank chose to keep rates on hold at last week’s policy meeting, with markets now seeing a roughly 21% chance of a 25-basis-point increase at November’s meeting.
The dollar index, which on Friday touched an over six-month high, firmed at 105.57 in early Asia trade.
Oil prices, a key indicator of currency parity, rose on Monday as investors focused on a tighter supply outlook after Moscow issued a temporary ban on fuel exports while remaining wary of further rate hikes that could dampen demand.
This is an intra-day update
