Rupee continues to appreciate against US dollar

KARACHI: The Pakistani rupee maintained its momentum against the US dollar, gaining another 0.37 percent during the opening hours of trading in the inter-bank market on Friday.

At midday, the rupee was hovering at 291.70, an increase of Rs1.08, in the inter-bank market.

On Thursday, the rupee had appreciated 0.38 percent to settle at 292.78.

The rupee has maintained an upward trajectory in recent days after hitting a record low of 307.1 in the inter-bank market on September 5.

How much did Pakistan spend on food imports in two months?

In a related development, the central bank announced an increase in financial incentives for banks, Microfinance Banks and ECs to bring more home remittances into the country.

Under these incentives, the State Bank of Pakistan (SBP) has increased the performance-based cash incentive up to Rs3 per USD on 15 percent growth in home remittances during this fiscal year.

Internationally, the US dollar stood near a six-month peak on the prospect of higher-for-longer US rates.

While the Fed kept interest rates steady this week, it signalled the possibility of another hike this year, with rates to be kept significantly tighter through 2024 than previously expected.

Oil prices, a key indicator of currency parity, rose on Friday as concerns that a Russian ban on fuel exports could tighten global supply outweighed fears that further US interest rate hikes could dent demand, but they were still headed for their first weekly loss in four weeks.