The Pakistani rupee made a marginal gain against the US dollar, appreciating 0.1% during the early hours of trading in the inter-bank market on Tuesday.
In the interbank market, the rupee was quoted at 283.30 at around 9:55 a.m., up Re0.28 from the price against the US dollar.
A day earlier, the rupee struggled to retain its gains from the previous week versus the dollar, falling Re0.38 (0.13%) to settle at 283.58 in the interbank market.
In a significant event, the State Bank of Pakistan (SBP) stated on Monday that foreign investors returned $225.1 million to Pakistan between July and February of FY23, down from $1.146 billion during the same period previous year by $820 million.
According to analysts, the sharp fall in profit and dividend repatriation indicates that weak economic conditions have significantly reduced international corporations’ income.
The US dollar fell against major peers globally on Tuesday as demand for the safest assets was dampened by fading concerns of a full-blown financial crisis.
In Asian trading, the US dollar index, which compares the greenback to six other currencies, including the yen, fell 0.14% to 102.6, adding to Monday’s 0.35% loss.
As risk sentiment fluctuated with the banking news, the dollar index hit a three-month high of 105.88 on March 8 before falling as low as 101.91 last week.
Oil prices, a crucial gauge of currency parity, fell on Tuesday after rising the previous session as markets concentrated on the banking crisis and signs of escalating Chinese demand.
