The Pakistani rupee continued its upward momentum against the US dollar in the interbank market on Wednesday. By 10:00 AM, the rupee had appreciated by 22 paisas (0.08%), reaching PKR 281 against the dollar.
On Tuesday, the local currency had closed at PKR 281.22 per dollar.
Globally, the Indian rupee is expected to trade near a record low on Wednesday, as the US Dollar Index surged to a six-week high amid weakness across Asian markets. Analysts believe this situation increases the likelihood of another round of intervention by the Reserve Bank of India (RBI).
According to one-month non-deliverable forwards, the Indian rupee is expected to open between 88.78 and 88.82 against the US dollar, compared to Tuesday’s close of 88.7725. The currency had hit a record low of 88.80 last Tuesday but has since been shielded from further declines through active RBI intervention over the past four trading sessions.
The Dollar Index rose 0.5% on Tuesday and gained another 0.3% during Wednesday’s Asian session, nearing the 99 level — its highest in six weeks.
A weakening Japanese yen has supported the dollar index, as the yen trades at its lowest level since February. Investors are closely watching the potential policy stance of Japan’s likely next Prime Minister, Sanae Takaichi.
