The Pakistani rupee continued to strengthen against the US dollar, gaining 0.39% during trading in the inter-bank market on Tuesday.
At 12:40pm, the rupee was hovering at 289.73, an increase of Rs1.13, in the inter-bank market.
On Monday, the rupee had appreciated 0.31% to settle at 290.86.
The rupee has maintained its upward trajectory in recent days and recovered nearly 6% since hitting a record low of 307.1 against the US dollar in the inter-bank market on September 5.
Internationally, the US dollar stood by 10-month highs against a basket of major currencies on Tuesday, supported by US bond yields scaling 16-year peaks, while the yen tiptoed deeper into the intervention danger zone.
A combination of resilient economic data, hawkish Federal Reserve rhetoric and a budget deficit to be financed by borrowing has the 10-year Treasury yield up more than 45 basis points in September to top 4.5% for the first time since 2007.
Rates markets are priced for an almost 40% risk of another Fed hike this year, against slimmer chances for another rise in Europe, and the difference has helped prop up a dollar many had bet would swiftly fall once short-term rates peaked.
Oil prices, a key indicator of currency parity, fell on Tuesday amid concerns that fuel demand will be crimped by major central banks holding interest rates higher for longer, even with supply expected to be tight.
This is an intra-day update
Read the full story at the Business Recorder - Latest News website.
