KARACHI: The Pakistani rupee on Thursday continued to depreciate against the dollar both in open market and in interbank as the US currency also bounced back in the international market.
As per the local money market, the dollar added 50 paisas in open market for buying at Rs116.40 and for selling at Rs117.20. The dollar also gained five paisas in interbank for buying at Rs115.25 and for selling at Rs115.45.
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On Wednesday, the greenback gained 90 paisas in open market for buying at Rs115.90 and for selling at Rs116.85. The dollar remained unchanged in interbank for buying at Rs115.20 and for selling at Rs115.40.
The dollar rose to a two-week high against a basket of major currencies on Thursday after a late recovery by US equities helped the currency recover as investors reassessed the danger of a trade war between China and the United States.
Investors have kept an eye out for any wider fallout from a Sino-US trade dispute, after Beijing on Wednesday proposed tariffs on US imports including soybeans, planes, cars, beef and chemicals.
The yen, often sought in times of market turmoil and political tensions, had rallied as US shares tumbled on Wednesday after China imposed retaliatory tariffs on US goods.
But a comeback by US equities helped the dollar recoup some losses after President Donald Trump’s economic adviser said the administration was negotiating with China, not engaging in a trade war.
Traders are divided other whether the row will affect the dollar meaningfully and, if it does, whether it will help or harm the currency.
The dollar has weakened in three of the last five sessions against the yen, down more than 5 percent so far this year. Against the Swiss franc, it has fallen 1.4 percent so far in 2018. The yen and franc tend to appreciate during geopolitical and economic tension.
The dollar rose 0.2 percent against a basket of six major currencies to 90.32 as risk appetite improved and Wall Street’s main indexes advanced, helping the US currency stabilise after recent declines.
The euro fell 0.2 versus the dollar to $1.2232. The dollar was 0.3 percent higher at 107.07 yen, having pulled higher from a low of 105.99 set the previous day.
