Rupee sees minor dip on IMF uncertainty

The Pakistani rupee dipped to Rs277.85 against the dollar, while gold prices hit a record high of Rs275,500

KARACHI:

The Pakistani currency depreciated by Rs0.05 to Rs277.85 against the US dollar in the inter-bank market, as uncertainty over the International Monetary Fund (IMF) Executive Board's final approval for a $7 billion loan programme later in the day impacted the currency market on Wednesday.

In the open market, however, the rupee gained Rs0.12 day-on-day to close at Rs280.33 per dollar, increasing by a total of Rs0.37 over the past three consecutive working days, according to the Exchange Companies Association of Pakistan (ECAP).

A dealer in the inter-bank market noted that a section of currency traders still lacks confidence in whether the IMF will approve the programme for Pakistan, reversing the uptrend seen in the domestic currency on Tuesday.

Finance Minister Muhammad Aurangzeb and State Bank of Pakistan (SBP) Governor Jameel Ahmad, however, expressed full confidence in the IMF during the day.

According to SBP data, the currency faced slight selling pressure, closing at a day-low of Rs277.85, down from the five-and-a-half-month high of Rs277.80 reached on Tuesday. The rupee had previously gained a net Rs0.90 per dollar over the past two weeks, finishing on a positive note on most days. The currency dealer downplayed the Rs0.05 drop, explaining that exporters continued selling dollars at comparatively lower premiums on futures counters, anticipating that the rupee will remain strong in the short to medium term. He projected the exchange rate to settle between Rs275 and Rs278 per dollar by the end of December 2024, amid an improved supply of foreign currency in the system compared to prevailing demand.

Gold hits new high

Gold prices surged by Rs2,500 per tola (11.66 grams), reaching an all-time high of Rs275,500 in Pakistan for the second consecutive working day, in line with record-breaking global prices on Wednesday.

In the international market, the precious metal rose by $25 per ounce (31.10 grams), hitting a new record high of $2,653, according to the All Pakistan Sarafa Gems and Jewellers Association.