The volatile Pakistani rupee recovered significantly by 0.54% or Rs 1.53 against the US dollar to close at Rs 280.77 in the interbank market on Friday amid optimism over the revival of the International Monetary Fund’s (IMF) loan programme.
Earlier, the local currency lost 1.57% or Rs 4.43 to Rs 282.30/$ in the previous two days, according to the State Bank of Pakistan (SBP).
Finance Minister Ishaq Dar said on Thursday that Pakistan would reach a staff-level agreement with the IMF within days as the government looks to finalize a $6.5 billion loan program, an analyst said.
“Rupiah dollar exchange rate is moving on media reports these days instead of demand and supply of USD in the market,” he said.
Earlier, the rupee touched a record low of Rs 285.09/$ on March 2, 2023, according to the central bank.
The resumption of the IMF program and the disbursement of the next $1.1 billion tranche from the fund, as well as other fresh debt flows, will determine the rupee-dollar rate in the near term.
“Revival reports will support the rupee against the US dollar, while reports of a delay in the resumption of the program will add pressure on the rupee against the greenback going forward,” Dar said.
Published in The Express Tribune on March 11th2023.
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