Pakistan’s rupee registered gains against the US dollar in the inter-bank market, and appreciated 0.18% in the opening hours of trading on Tuesday.
At around 10:20am, the rupee was being quoted at 221.26, an appreciation of Re0.40 against the greenback, during intra-day trading.
On Monday, Pakistan’s rupee registered back-to-back gains against the US dollar, and closed at 221.66 after an appreciation of Reo.26 or0.12% in the inter -bank market. This came after the rupee had remained largely stable during the previous week, hovering around the 221-222 level in the inter-bank market even as the US dollar strengthened against other currencies.
In a key development, Finance Minister Ishaq Dar and Governor State Bank of Pakistan (SBP) on Monday discussed the fiscal and monetary measures being undertaken for economic stability, revival and growth of the country.
Governor SBP Jameel Ahmad said the continuing administrative efforts by the government and the policy measures of SBP had resulted in achieving stability to Pakistani rupee value and restrained exchange rate volatility.
Globally, the US dollar was kept on the back foot on Tuesday by strength in the Chinese yuan and other currencies sensitive to China’s growth, as markets clung to hopes that China’s restrictive zero-tolerance approach to COVID-19 will eventually ease.
Oil prices, a key indicator of currency parity, fell on Tuesday as recession concerns and worsening COVID-19 outbreaks in China sparked fears of lower fuel demand, outweighing supply worries.
However, Chinese health officials over the weekend reaffirmed China’s commitment to its strict zero-COVID policy.
Also, recent data showed the country’s exports and imports unexpectedly contracted in October. COVID cases sharply escalated in Guangzhou and other major Chinese cities, official data showed on Tuesday.
