US dollar rate drops to 294.50 PKR in interbank

KARACHI: The US dollar (USD) dropped 1.45 Pakistani rupee (PKR) in interbank on Tuesday morning and trading at Rs294.50, ARY News reported.

Pakistani rupee (PKR) on Monday gained Rs0.90 against the US dollar in the interbank trading and closed at Rs295.95.

According to the forex dealers, the greenback was traded at Rs297 in the open market whereas, the banks traded the greenback to importers at Rs296.45.

The US dollar dipped below Rs300 in the interbank market last week as the rupee continued its upward trajectory, the forex dealers said.

In August, the Pakistani rupee (PKR) had been witnessing a continuous devaluation. The buying and selling rates of the dollar in the open market were standing at Rs322 and Rs325 respectively.

It is pertinent to mention here that the

US Dollar (USD) index hit its highest level in six months on September 14, as economic data was mostly stronger than anticipated and the European Central Bank (ECB) signaled it was finished with its rate hike cycle.

U.S. retail sales increased by 0.6% in August, more than the expected 0.2% rise, boosted by higher gasoline prices while weekly initial jobless claims rose to 220,000 but were below the 225,000 forecast.

Rising gasoline prices also affected the latest inflation data, as the producer price index for final demand rose by 0.7% last month, the most in more than a year, and higher than the 0.4% estimate.

The dollar index was last up 0.5% at 105.18, just off the 105.31 level hit earlier in the day, its highest since March 10.