Rupee snaps six-day losing streak
Rupee appreciated 1.89% day-on-day, but it was still down 14.7% since the beginning of current fiscal year on July 1, 2021. Photo: file
Pakistan’s currency recovered 0.82% (or Rs1.80) to Rs220.12 against the US dollar in inter-bank market on Tuesday, ending a six-day losing streak in the wake of revival of IMF loan programme, which was extended to $6.5 billion.
In open market, the domestic currency regained a massive Rs8.50 in a single day to around Rs222 against the greenback, according to the Exchange Companies Association of Pakistan. The recovery came also due to the downward trend in international crude oil market as Pakistan met over 70% of its energy demand through imports. The International Monetary Fund (IMF) executive board has approved the release of next loan tranche of $1.1 billion.
Pakistan is expected to receive it within a week, which will help stabilise the country’s foreign exchange reserves that had fallen to a critically low level of $7.81 billion covering less than six weeks of import. The IMF loan resumption will also unlock financing and investment from other multilateral and bilateral creditors like the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank and friendly countries.