Rupee continues recovery against USD, inter-bank rate at 204.85

The Pakistani rupee recovered 0.13% (or Rs0.27) on a day-to-day basis to a three-week high of Rs204.85 against the US dollar on the last day of the outgoing fiscal year on Thursday.

Cumulatively, in the outgoing fiscal year, the rupee slumped a record 30% to Rs204.85 on Thursday compared to the close of Rs157.54 a year ago on June 30, 2021.

"The rupee has maintained a positive trend on reports that the IMF is about to resume its loan programme for Pakistan," Ismail Iqbal Securities Head of Research Fahad Rauf said while talking to The Express Tribune.

Besides, the roll-over of the Chinese loan of $2.3 billion to Pakistan after a wait of four months in recent days and reports of extension in Saudi Arabia's dollar deposits at the State Bank of Pakistan (SBP) also helped the rupee gain ground against the greenback, he said.

"The rupee is anticipated to stabilize around Rs200 against the US dollar under the current cycle of recovery."

Earlier, it hit an all-time low at Rs211.93 around mid-June 2022.

Rauf said the domestic currency depreciated significantly by 30% in FY22 amid the quick depletion in the country's foreign exchange reserves amid stalling of the IMF's $6 billion loan programme.

The reserves dropped around $8 billion in the past six-month to $8.2 billion in the week ended June 17, 2022.

They would have now recovered to around $10 billion as of now after receipt of IMF loan of $2.3 billion, he said.