In the interbank market, the Pakistani rupee was mainly constant versus the US dollar but fell 0.01% on Monday during the first hours of trading.
The rupee was depreciating by Re0.03 or 0.01% versus the dollar at around 10:10am, when it was quoted at 218.46.
For the third session in a row, the rupee lost ground versus the US dollar on Friday, falling Re0.05 or 0.02% to close at 218.43.
The currency has been strengthening versus the dollar since the last week of September, thanks to a change in sentiment brought on by Ishaq Dar’s entry at the Ministry of Finance and actions taken by the government and central bank.
It was reported at the end of the prior week that Dar would like to reschedule $27 billion in non-Paris Club debt, the majority of which is owing to China, but would not pursue haircuts as part of any restructuring.
In light of Pakistan’s losses and disaster caused by climate change, the finance minister has also urged for further policy support from the International Monetary Fund (IMF) and multilateral donors.
Internationally, the US dollar continued to outperform other currencies after statistics revealed that US inflation increased by 0.4% in September compared to August, supporting predictions of another hefty rate hike at the upcoming Federal Open Market Committee (FOMC) meeting.
At 113.02, the US dollar index, which compares the dollar to a basket of currencies including the yen, increased.
After China extended liquidity measures to support its pandemic-hit economy on Monday, oil prices, a crucial indicator of currency parity, increased, raising optimism for an improved outlook on fuel consumption from the world’s top crude importer.
