US dollar depreciates to Rs 292.70

KARACHI: The Pakistani rupee continued its upward trajectory against the US dollar, gaining another 0.40 percent during the opening hours of trading in the inter-bank market on Thursday.

At midday, the rupee was hovering at 292.70, an increase of Rs1.18, in the inter-bank market.

On Wednesday, the rupee had appreciated 0.35 percent to settle at 293.88.

ADB’s economic outlook report predicts decrease in Pakistan’s inflation, GDP

The rupee has been on a merry run in recent days after hitting a record low of 307.1 in the inter-bank market on September 5.

The change in fortune comes as State Bank of Pakistan (SBP) introduced structural reforms in the Exchange Companies’ (ECs) sector and administrative measures taken by the authorities to curb currency smuggling and hoarding.

Globally, the US dollar hit fresh peaks on Thursday, sitting around its highest against the yen since November after a hawkish pause by the US Federal Reserve.

The dollar index, which measures the currency against a basket of rivals, rose as high as 105.59 on Thursday, its strongest since March 9. The index climbed for its ninth straight week last week, its longest winning streak in nearly a decade as resilient US growth fueled a rebound in the dollar.

Oil prices, a key indicator of currency parity, fell in early Asian trade on Thursday, after posting the largest fall in a month in the previous session, as US interest rate hike expectations offset the impact of drawdowns in US crude stockpiles.