During the first hours of trade on Monday, the Pakistani rupee appreciated 0.7% against the US dollar in the interbank market.
The exchange rate for the currency was 261, up Rs1.82 from the previous 10:10 am price for the US dollar.
The rupee gained 2.45% during the previous week to end at 262.82 against the US dollar, purportedly helped by the realization of export revenues and a stronger inflow of remittances through legal channels.
The State Bank of Pakistan (SBP) also announced that its foreign exchange reserves for the week rose slightly to $3.19 billion.
But before the International Monetary Fund (IMF) program is revived, the market expects any good movement in the currency to be temporary.
The solid run of economic statistics coming out of the US on Monday helped the dollar gain ground globally, and traders predict that the Federal Reserve will continue to tighten monetary policy longer than previously anticipated.
Market expectations have increased that the US central bank has more work to do in taming inflation and that interest rates will need to rise as a result of a flood of data coming out of the largest economy in the world in recent weeks that point to a still-tight labor market, sticky inflation, strong retail sales growth, and higher monthly producer prices.
The US dollar index increased by 0.05% to 104.03 and is currently up about 2% for the month, on pace to post its first monthly gain since late September.
After settling down $2 a barrel on Friday, oil prices, a major measure of currency parity, were little changed in early Asian trade on Monday as increased supply in the United States and predictions of additional interest rate hikes dampened hopes for a turnaround in China’s demand.
