Pakistan’s rupee maintained its upward momentum and was hovering at the 212 level in the opening hours of trading in the inter-bank market on Tuesday.
At around 11:00 am, the rupee was being quoted at 212.69, an appreciation of Rs1.29 or 0.60% against the greenback, during intra-day trading.
On Monday, the rupee had continued its winning momentum against the dollar, appreciating for the 10th successive session to close at 213.98 in the inter-bank market.
The currency has strengthened consistently since hitting its all-time low of 239.94 against the US dollar last month.
There has been an influx of positive news in recent days, leading to an improvement in the rupee value, with clarity on the International Monetary Fund (IMF) programme over the subsequent release of the $1.17 billion tranche boosting market sentiment.
Furthermore, Saudi Arabia’s plan to renew its $3-billion deposit in assistance to Pakistan, while also intending to provide $100 million per month for 10 months in petroleum products, is likely to help maintain the momentum, said Trust Securities and Brokerage Limited (TSBL) in a note on Tuesday.
It was also reported that Prime Minister Shehbaz Sharif is likely to undertake a two-day (August 23-24) official visit to Qatar aimed at cementing existing bilateral relations and seal some agreements including deliberations on a new LNG deal.
“If materialised, it would resolve the energy crisis and boost market sentiment,” said TSBL.
Oil prices, also a key determinant of currency parity, settled lower on Monday after disappointing Chinese economic data renewed concerns of a global recession that would be expected to reduce fuel demand.
This is an intra-day update
