Intra-day update: rupee gains further ground against US dollar

The Pakistani rupee continued to strengthen against the US dollar, appreciating 0.08% during the opening hours of trading in the inter-bank market on Wednesday. At 10am, the currency was hovering at 281, a gain of Re0.22 against the greenback. On Tuesday, the local unit closed at 281.22. Globally, the Indian rupee may inch towards a record low at the open on Wednesday, bogged down by the dollar index’s rally to a six-week high and weakness in Asia, prompting bets on another round of central bank intervention. The 1-month non-deliverable forward indicated the Indian rupee will open in the 88.78-88.82 range versus the US dollar, compared with Tuesday’s close of 88.7725. The Indian rupee hit an all-time low of 88.80 last Tuesday. In the four sessions since then, the local unit has managed to avoid slipping to a new low, helped by active intervention by the Reserve Bank of India. The dollar index rose 0.5% on Tuesday and gained another 0.3% in Wednesday’s Asian session, inching towards the 99 mark, its highest level in six weeks.