Amid optimism over the revival of the International Monetary Fund (IMF) loan programme, the volatile Pakistani rupee made a notable recovery of 0.54%, or Rs1.53, to close at Rs280.77 against the US dollar in the interbank market on Friday.
Earlier, in the prior two consecutive days, the local currency had cumulatively lost 1.57%, or Rs4.43, to Rs282.30/$ on Thursday, according to the State Bank of Pakistan (SBP).
An expert said that the rupee’s latest recovery has been seen after Finance Minister Ishaq Dar’s said, on Thursday, that Pakistan would strike staff-level agreement with the IMF in a few days, as the government remained committed to complete the $6.5 billion loan programme.
“The rupee-dollar exchange rate is moving on media reports these days instead of on demand and supply of the US dollar in the market,” he said.
Earlier, the rupee hit a record low at Rs285.09/$ on March 2, 2023, according to the central bank.
Developments on resumption of the IMF programme and receipt of the next $1.1 billion tranche from the fund, as well as other new debt inflows will determine the rupee-dollar exchange rate in the near future.
“Reports on revival will support the rupee against US dollar, while reports on a delay in the resumption of the programme will mount pressure on the rupee against the greenback, going forward,” Dar said.
Published in The Express Tribune, March 11th, 2023.
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