The Pakistani rupee continued to appreciate against the US dollar, gaining another 0.5% during the opening hours of trading in the inter-bank market on Thursday.

At 10:10am, the rupee was hovering at 297.33, an increase of Rs1.49, in the inter-bank market.

On Wednesday, the rupee had appreciated 0.36% to settle at 298.82.

The currency has been on an appreciation run since the government announced a crackdown against hoarders and smugglers of local currency last week.

In a related development, the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) is expected to meet today to decide about the policy rate. The key interest rate already stands at a record high of 22%.

Globally, the US dollar hovered below a three-month high to the euro on Thursday as attention turned to the European Central Bank’s rate-setting meeting later in the day, after US inflation data failed to alter views for a Federal Reserve pause next week.

The US consumer price index (CPI) increased by 0.6% last month, the largest gain since June 2022, the Labor Department said on Wednesday.

However, core inflation, which is of greater concern to the Fed as it strips out food and energy prices, ran at a 4.3% year-on-year rate in August from

The US dollar index – measuring the currency against a basket of six developed-market peers, including the euro and yen – edged 0.1% lower to 104.63 in the Asian morning.

Oil prices, a key indicator of currency parity, rebounded on Thursday as markets turned their attention back to a tighter crude supply outlook for the rest of 2023 with demand set to stay robust through to next year.