- Interbank market currency fluctuates between 269 and 270.
In Monday’s trade on the interbank market, the Pakistani rupee marginally strengthened against the US dollar, rising by 0.04%.
The rupee increased by Re0.11 to a value of 269.17 at roughly 2:10 p.m. during intraday trade.
The exchange rate had increased by 2.71% during the previous week to settle at Rs269.28 in the interbank market.
The increase is related to the most recent exchange rate adjustment following the termination of the dollar peg.
Because they think the rupee is reasonably valued, exporters are also selling their dollars in the market.
Inflows from illegal markets were diverted to official channels while the currency rate was allowed to float freely.
In addition, a team from the International Monetary Fund (IMF) was in Pakistan, and market investors anticipated the restart of the bailout plan.
The ninth evaluation of Pakistan’s economy was still unfinished, hence the program is still in limbo.
Finance Minister Ishaq Dar acknowledged receiving the Memorandum of Economic and Financial Policies even though the IMF team left without signing a staff-level agreement (MEFP).
Prior to an important consumer price data the next day, the US dollar rose against most major currencies on Monday, hovering close to a five-week high.
This was due to growing expectations for more Federal Reserve policy tightening.
The dollar index, which compares the value of the dollar to six other currencies including the yen, euro, and pound sterling, increased by 0.068% to 103.65, remaining near the previous day’s record high of 103.96, which was the highest point since January 6.
Oil prices, a vital gauge of currency parity, dropped on Monday after climbing 2% in the previous session as investors concentrated on short-term demand worries resulting from critical impending US inflation data and refinery maintenance in Asia and the US.