Rupee near three-week high vs greenback

KARACHI:

Pakistani currency continued to improve its value in a sentiment-based rally for the fifth consecutive working day on Wednesday and hit nearly three-week high at slightly above Rs285 to a dollar in the inter-bank market.

An expert, however, believes the prevailing high inflation reading near 27% and low foreign currency inflows from global creditors may soon interrupt the rally and the rupee may resume its downward trend. According to State Bank of Pakistan’s (SBP) data, the currency rose 0.23%, or Rs0.66, and closed at Rs285.13 against the greenback.

Read: Rupee surges to 2-week high amid IMF optimism

It has cumulatively gained 1%, or Rs3, in the past five working days following successful completion of the International Monetary Fund’s (IMF) first review under its $3 billion loan programme. Pakistan is expected to receive the second loan tranche of $700 million next month after the IMF’s executive board meeting on December 7.

Published in The Express Tribune, November 23^rd, 2023.

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