The Pakistani rupee gained 0.44% against the US dollar during the first few hours of trading on Wednesday.
At 11:05 a.m., the rupee was trading at 287.25, up Rs1.27 in the interbank market.
The Pakistani rupee fell for the eighth consecutive session on Tuesday, weakening 0.21% versus the US dollar in the interbank market to end at 288.52 per dollar.
In a significant step, the State Bank of Pakistan (SBP) on Tuesday night permitted Exchange Companies (ECs) to import cash US dollars against the value of their approved foreign currency export consignments within five working days, via reputable cargo or security companies.
Previously, ECs may export acceptable currencies in cash but had to keep dollars in their bank accounts. With this change, ECs can now bring cash dollars via cargo or security businesses.
Globally, the US dollar stayed near a two-week high versus the euro on Wednesday, as traders awaited important policy decisions from the countries’ central banks this week.
The US dollar index, which measures the currency against six major peers but is highly weighted towards the euro, rose 0.06% in the Asian morning to 101.37, after reaching a high of 101.65 overnight for the first time since July 11.
The dollar index has recovered from a 15-month low of 99.549 set a week ago, thanks to continued signals of a sturdy US economy in the face of the Federal Open Market Committee’s (FOMC) rapid string of interest rate rises.
Oil prices, a crucial measure of currency parity, fell on Wednesday, falling from three-month highs achieved the day before after industry data revealed an expected increase in US oil stocks, although losses were limited by signs of tighter global supply and optimism for Chinese economic stimulus.