Rupee registers marginal decline against US dollar

The Pakistani rupee depreciated 0.11% against the US dollar during trade on Tuesday.

At 11:25 a.m., the rupee traded at 287.75, down Re0.32 in the inter-bank market.

On Monday, the rupee began the week with a 0.16% depreciation versus the US dollar, closing at 287.43.

In a significant development, the Economic Coordination Committee (ECC) approved, after discussion, a proposal to change the contours of six State Bank of Pakistan (SBP) incentive schemes in order to improve remittance inflows and achieve optimal remittance inflow through formal channels.

Home remittances contribute significantly to the country's foreign account, increasing Pakistan's economic activity and supplementing remittance-dependent households' discretionary earnings.

The US dollar rose sharply on Tuesday as traders battled to make sense of the world's two major nations' conflicting growth forecasts while becoming resistant to another set of poor Chinese trade figures.

China's exports plunged 14.5% year on year in July, while imports declined 12.4%, according to statistics released on Tuesday, the sharpest drop in outgoing shipments from the world's second-largest economy since February 2020.

In other news, the US dollar rallied broadly and gained 0.6% against the Japanese yen, closing at 143.31 yen.

Oil prices were little changed on Tuesday as China reported a steep monthly reduction in imports in July, reinforcing demand concerns, albeit this was countered by supply concerns from Saudi Arabian and Russian output curbs.