Rupee hits one-month high at 283.39 to a dollar

Gains strength gradually on hopes of early revival of IMF programme

KARACHI:

Pakistani rupee ticked up 0.03%, or Rs0.08, on Wednesday and closed at a one-month high at Rs283.39 against the US dollar in inter-bank market, maintaining its winning streak for the second consecutive working day.

The currency market resumed rupee-dollar exchange after five-day-long Eid holidays. On the previous working day on April 20, it had closed at Rs283.47/$ with a rise of 0.15%, or Rs0.42.

Market talk suggested that the rupee gradually gained strength on hopes of revival of the International Monetary Fund (IMF) loan programme. Supply of the greenback has so far remained higher compared to its demand with overseas Pakistanis sending significantly higher remittances during Ramazan.

Historical data indicates that inflows slow down after Ramazan and pick up momentum ahead of Eidul Azha (falling at the end of June this year).

Experts pointed out that dollar supply was slightly higher in the wake of central bank’s warning that monetary penalties would be slapped on exporters failing to bring export proceeds back to Pakistan on time after April 30, 2023.

Moreover, Chief of Army Staff General Asim Munir landed in China on Tuesday on a four-day visit. The market was of the view that the trip may lead to fresh flow of financing from Beijing, as Pakistan required a financial commitment of another $3 billion from friendly countries before the resumption of $7 billion IMF programme.

Earlier, Saudi Arabia and the UAE committed to providing $2 billion and $1 billion, respectively.

Meanwhile, gold price rose Rs450 to Rs218,650 per tola (11.66 grams) following speculation that demand for the precious metal was surging.

Published in The Express Tribune, April 27^th, 2023.

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