Rupee’s winning run against US dollar continues

The Pakistani rupee gained 0.4% compared to the US dollar during the first hours of trade in the interbank market on Wednesday.

At 10:10 a.m., the rupee was trading at 288.64, up Rs1.16 in the interbank market.

The rupee gained 0.37% on Tuesday, closing at 289.80.

Since touching a record low of 307.1 versus the US dollar in the inter-bank market on September 5, the rupee has maintained its upward trend and recovered more than 6%.

The US dollar traded at a 10-month high against its major counterparts on Wednesday, as Treasury yields remained elevated on the prospect of higher-for-longer US rates, while the yen fell towards a widely watched intervention zone.

Fed officials have recently hinted that the central bank may need to hike interest rates further after keeping rates constant last week but tightening its monetary policy stance.

This has propelled US Treasury yields to multi-year highs as money markets revise their estimates of when US rates will peak and whether monetary conditions will remain tighter for longer than previously believed.

The US dollar index was last at 106.20, having reached a 10-month high of 106.26 the previous session, while the euro was trading near Tuesday’s six-month low of $1.0569.

Oil prices, a crucial currency parity indicator, surged about $1 on Wednesday as markets focused on supply tightness heading into winter and a “soft landing” for the US economy.

The post Rupee’s winning run against US dollar continues appeared first on Economy.pk.