The Pakistani rupee strengthened against the US dollar for the tenth consecutive session on Tuesday, rising 0.36% in the interbank market.
Rupee Gained In Interbank
According to the State Bank of Pakistan (SBP), the rupee finished at 294.9 after a 1.05 percent gain in the interbank market.
Interbank closing #ExchangeRate for today https://t.co/F9zIthpsBr#SBPExchangeRate pic.twitter.com/cxseTCqdgS
— SBP (@StateBank_Pak) September 19, 2023
The rupee gained 0.3% on Monday, closing at 295.95.
The rupee has been on a roll in recent days, recovering from a record low of 307.1 in the inter-bank market.
The improvement comes after authorities implemented reforms in the Exchange Companies (ECs) sector and purportedly cracked down on smuggling, providing assistance to currency markets.
The result marginally improves the outlook, which had been hampered by the relaxation of import restrictions, which caused the current account deficit to worsen in July.
Topline Securities Recent Study
“We expect PKR/USD in the inter-bank market to be in the range of Rs320-340 by June 2024,” Topline Securities recently stated in a study.
Globally, the US dollar fell broadly, but it remained close to a six-month high against its major counterparts achieved last week ahead of the Fed’s interest rate decision on Wednesday.
The US dollar index fell 0.04% to 105.04. According to the CME FedWatch tool, money markets expect the Fed to keep rates on hold at its forthcoming meeting, but the attention will be on the central bank’s forward guidance.
“The market is fully pricing in a hold and this meeting was always likely to be a pass since the Fed skipped June, effectively moving to an every-other-meeting cadence,” said Erik Weisman, chief economist and portfolio manager at MFS Investment Management.
Oil Prices Increased
Oil prices, a major measure of currency parity, climbed for the fourth consecutive session on Tuesday, as sluggish US shale output raised fresh concerns about a supply gap caused by Saudi Arabia and Russia’s protracted production restrictions.
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