The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.07% during trading on Tuesday.
At around 10am, the rupee was hovering at 287.23, an increase of Re0.20, in the inter-bank market.
On Monday, the rupee opened the week on a negative note against the US dollar and depreciated 0.16% to settle at 287.43.
In a key development, the Economic Coordination Committee (ECC), after discussion, approved the proposal of changes in the contours of six incentives schemes of the State Bank of Pakistan (SBP) in order to improve the inflow of remittances, and to get optimal remittance inflow through formal channels.
Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing disposable incomes of remittance-dependent households.
The US dollar turned decisively higher on Tuesday as traders struggled to get a grip on the diverging growth outlooks between the world’s two largest economies, while at the same time grew immune to another disappointing set of Chinese trade figures.
China’s exports fell an annual 14.5% in July while imports contracted 12.4%, data on Tuesday showed, marking the biggest decline in outbound shipments from the world’s second largest economy since February 2020.
Elsewhere, the US dollar rose broadly and eked out a 0.6% gain against its Japanese counterpart to last trade at 143.31 yen.
Oil prices, a key indicator of currency parity, were little changed on Tuesday after China reported a sharp monthly drop in imports in July, which reinforced demand fears, though that was offset by supply concerns from Saudi Arabian and Russian output cuts.
This is an intra-day update
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