KARACHI: The US dollar strengthened against the Pakistani rupee by 20 paise (Re0.20) in the inter-bank market on Tuesday,  said the State Bank of Pakistan. The dollar closed at Rs277.03, up from Rs276.83.

This marks the end of a 28-session winning streak for the Pakistani rupee against the US dollar, as it depreciated by 0.07% in the inter-bank market on Tuesday. The local currency had been on a remarkable appreciation trend since reaching its record low of 307.1 against the dollar on September 5.

The sustained increase in the value of the Pakistani rupee was primarily attributed to intensified efforts to combat smuggling and tighter controls on the Exchange Companies (ECs) sector.

The central bank has been particularly vigilant in regulating exchange companies, and over the past month, it suspended the authorization of nine exchange companies due to serious violations.

On the global stage, the US dollar faced a weak start on Tuesday, with investors closely monitoring developments in the Middle East and anticipating a series of speeches from central bank officials, notably Fed Chair Powell, to gain insights into the monetary policy outlook.