Rupee recovers 1.13 vs dollar on PM aide’s remarks

The recovery of the rupee against the US dollar continued on Wednesday as it gained Rs1.13, or 0.65%, in the inter-bank market and closed at Rs173.76.

According to the State Bank of Pakistan (SBP), the rupee had closed at Rs174.89 to a dollar on Tuesday.

Earlier on November 12, the rupee dipped to an all-time low at Rs175.73 against the greenback owing to a deadlock in talks between Pakistan and the International Monetary Fund (IMF) over the resumption of $6 billion loan programme.

Speaking to The Express Tribune, Ismail Iqbal Securities Head of Research Fahad Rauf highlighted that upbeat statement of Adviser to Prime Minister on Finance Shaukat Tarin about the revival of IMF programme in the next few days triggered the rupee’s recovery.

“Moreover, with the end of a joint parliamentary session on Wednesday, the public got much-needed political clarity,” he said. “The turbulence has ended and political normalisation is expected.”

He pointed out that the rescheduling of monetary policy meeting to an earlier date by the central bank signalled compliance with the IMF’s conditions and “the market now expects the resumption of Extended Fund Facility very soon”.

On the other hand, gold price fell by Rs2,850 to Rs122,000 per tola. Cumulatively, the gold price has decreased by Rs7,100 since touching all-time high of Rs129,100 on November 11, 2021.

Published in The Express Tribune, November 18^th, 2021.

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