Pakistani rupee’s winning streak against US dollar ends after 28 sessions

WEB DESK: In a significant shift, the Pakistani rupee’s 28-session winning streak against the US dollar came to an end on Tuesday, depreciating by 0.07 per cent in the inter-bank market.

According to the State Bank of Pakistan (SBP), the rupee settled at 277.03, marking a decrease of Re0.20 in the inter-bank market.

Interbank closing #ExchangeRate for todayhttps://t.co/Xmpc8bGt0G#SBPExchangeRate pic.twitter.com/sdhbPZmUOK

— SBP (@StateBank_Pak) October 17, 2023

This slight decrease followed Monday’s appreciation of 0.29 per cent, when the rupee settled at 276.83.

This recent trend in the rupee’s value is noteworthy, especially considering its remarkable journey since hitting a record low of 307.1 in the inter-bank market on September 5.

This unprecedented appreciation was primarily fueled by a crackdown on smuggling and stricter controls within the Exchange Companies (ECs) sector.

Read more: Pakistan Stock Exchange up by more than 200 points, closes at 49,731

The State Bank of Pakistan has taken decisive measures, suspending the authorization of nine exchange companies in the last month due to serious violations.

Internationally, the US dollar faced challenges on Tuesday as investors monitored developments in the Middle East and prepared for a series of speeches by central bank officials, notably Fed Chair Powell.

The dollar index, measuring the US currency against six counterparts, experienced a slight dip of 0.038 per cent to 106.20 after Monday’s 0.36 per cent drop.

Market focus remains on Fed Chairman Jerome Powell, who is scheduled to speak on Thursday during a week filled with speeches by regional bank heads.

Furthermore, it’s important to note that oil prices, a significant indicator of currency parity, stabilised on Tuesday after a decline of over $1 on Monday.