Intra-day update: Dollar reaches Rs290.50

KARACHI: The Pakistani rupee lost Rs2 against the US dollar during the interbank trading on Tuesday.

The local currency was being traded at Rs290.50 in interbank market around 11:40am.

During the previous week, the local unit witnessed depreciation of 0.52 per cent, closing at 288.49 against the greenback.

Globally, the safe-haven US dollar stayed firm against major peers while the yuan sank to a nine-month trough after China’s central bank unexpectedly cut key policy rates for a second time in three months on Tuesday to shore up the country’s sputtering economy.

PSX marginal increase after Independence Day

The dollar index, which measures the currency against six developed-market counterparts including the euro and yen, was about flat at 103.08 after hitting a 1-1/2-month high at 103.46 on Monday, buoyed by demand for the safest assets following a spate of disappointing Chinese economic indicators that raised concerns about global growth.

Punctuating those worries, Chinese data on industrial output, retail sales and investment released shortly after the PBOC’s rate cut showed unexpected slowdowns.

Oil prices, a key indicator of currency parity, fell in early trade on Tuesday ahead of a slew of economic data from China which should provide clues on the outlook for any recovery in demand in the world’s top oil importer.