Intraday Update: Rupee Continues to Strengthen Against US Dollar

The Pakistani rupee gained a further 0.31% against the US dollar during the first hours of trading in the interbank market on Monday.

At 10:20 a.m., the rupee was trading at 295.9, up Re0.95 in the interbank market.

In the preceding week, the rupee gained approximately 2.1% against the US dollar in five sessions, closing at 296.85 in the inter-bank market.

As momentum continued to favor the rupee, the currency closed positive on all five days, extending its winning streak to eight consecutive sessions.

Authorities implemented reforms in the Exchange Companies sector and reportedly cracked down on smuggling, adding assistance to currency markets.

With the exception of sterling, the US dollar and other major currencies were flat in early dealings on Monday, as a Japanese holiday and a slew of scheduled central bank meetings took the oxygen out of markets.

Most investors believe that divergences in economic growth and yields will keep the dollar strong, especially against the euro.

The dollar index was down a bit at 105.23, while the euro was up 0.11% at $1.0667. The pound was last worth $1.2397, up 0.06% on the day.

Oil prices, a major measure of currency parity, increased for the third straight session on Monday, boosted by projections of a growing supply gap in the fourth quarter after Saudi Arabia and Russia extended cutbacks, as well as hope for a revival in demand in China, the world’s biggest crude importer.

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