Rupee continues its winning spree against USD

KARACHI: The Pakistani rupee continued to strengthen against the US dollar, gaining another 0.33 percent uring the opening hours of trading in the inter-bank market on Friday.

At midday, the rupee was hovering at 277.65, an increase of Re0.93, in the inter-bank market.

On Thursday, the rupee had appreciated 0.33 percent to settle at 278.58.

In the open market also, the dollar lost Re1 to settle at Rs278.

The greenback saw this dip in value in exchange for the Pakistani rupee, following the weeks-long trend of the currency’s depreciation in both the interbank and open markets.

In the last five weeks, the US currency has depreciated by Rs52 in the open market and Rs28.42 in interbank trade.

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This is one of the longest appreciation runs seen by the rupee against the US dollar in the inter-bank market, and comes in large part due to the authorities’ crackdown on smuggling and hoarding of foreign currency as well as reforms in the Exchange Companies’ sector.

Globally, the US dollar remained firm on Friday, putting pressure across a basket of currencies as stronger-than-expected US consumer inflation revived prospects that the Federal Reserve will have to keep rates higher for longer.

Oil prices, a key indicator of currency parity, rose on Friday after the US tightened its sanctions programme against Russian crude exports, raising supply concerns in an already tight market, and global inventories are forecast to decline through the fourth quarter.