Intraday Update: Rupee Gains Strength as US Dollar Dips Below 300 in Interbank Market

The Pakistani rupee maintained its positive momentum against the US dollar on Tuesday, rising 0.47% during interbank trading.

At 2:35 p.m., the rupee was trading at 299.75, up Rs1.41 in the interbank market.

The rupee gained 0.59% to close at 301.16 in the interbank market on Monday.

In a similar incident, the State Bank of Pakistan (SBP) revealed on Monday that inflows of home remittances fell by 22% during the first two months of this fiscal year (FY24).

According to the SBP, Pakistan received $ 4.12 billion in worker remittances in July-August of FY24, compared to $ 5.25 billion in the same time last fiscal year (FY23), a 21.6 percent or $ 1.13 billion decrease.

During trading on Tuesday, the US dollar regained some lost ground internationally.

US inflation data for August is due on Wednesday, with traders eager to see if the world's largest economy is on course for a "soft landing" and if the Fed has farther to go in hiking rates.

The US dollar index, which had an eight-week winning streak come to an end last week, climbed 0.03% to 104.60 after sliding 0.46% the previous session. Sterling held steady at $1.2508.

Oil prices, a major indicator of currency parity, remained above $90 per barrel on Tuesday as investors anticipated macroeconomic data that could suggest whether interest rates in the United States and Europe will climb higher, and the implications for oil demand.