Dollar rate lowered to Rs295.80

KARACHI: The Pakistani rupee continued to appreciate against the US dollar during the opening hours of trading in the inter-bank market on Monday.

At mid-day rupee was hovering at 295.80, an increase of Re1.05, in the inter-bank market.

During the previous week, the rupee appreciated nearly 2.1 percent across the five sessions to close at 296.85 against the US dollar in the inter-bank market.

The currency closed positive on all five days, extending its winning run to eight successive sessions as momentum continued to favour the rupee.

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The change in fortune comes as authorities introduced reforms in the Exchange Companies’ sector and reportedly cracked down on smuggling, lending support to the currency markets.

Internationally, the US dollar and most major currencies were flat-lining in early trades on Monday, barring a blip in sterling, as a Japanese holiday and a bunch of upcoming central bank meetings sucked the air out of markets.

Oil prices, a key indicator of currency parity, rose for a third straight session on Monday, buoyed by forecasts of a widening supply deficit in the fourth quarter after Saudi Arabia and Russia extended cuts and on optimism of a demand recovery in China, the world’s top crude importer.