Third successive gain: IMF funds help rupee strengthen marginally against US dollar

The inflow of funds from the International Monetary Fund (IMF) helped add to the gains of the Pakistani rupee for the third successive session, as the local currency appreciated 0.07% against the US dollar in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee closed at 218.60 after appreciating Re0.15 against the greenback. During intra-day trading, the rupee had appreciated to as high as 217.25.

On Wednesday, the rupee had closed at 218.75 after appreciating Rs1.37 or 0.63% against the US dollar, following revival of the much-awaited IMF programme.

On Wednesday night, the State Bank of Pakistan (SBP) said it had received inflows amounting to $1.16 billion from the IMF as loan tranche of the Extended Fund Facility (EFF).

The Executive Board of the IMF, on Monday, completed the combined seventh and eighth reviews of the Extended Arrangement under the EFF for Pakistan and allowed an immediate disbursement of SDR 894 million (some $1.16 billion).

Accordingly, the loan tranche was released on Wednesday night. With the arrival of these inflows the total disbursements under the EFF programme rose to nearly $4 billion.

This would help improve SBP’s foreign exchange reserves and will also facilitate realisation of other planned inflows from multilateral and bilateral sources, the central bank had said.

Globally, the dollar index, which measures the greenback against a basket of six currencies, was last down 0.1% at 108.66, after earlier coming within a whisker of Monday's two-decade peak of 109.48.

Meanwhile, oil price, a key determinant of currency parity, fell on Thursday, led lower by increased supply and worries that the global economy could slow further with renewed restrictions to curb Covid-19 in China.

Inter-bank market rates for dollar on Thursday

BID Rs 218.50

OFFER Rs 219.50

Open-market movement

In the open market, the PKR lost 3 rupees for both buying and selling against USD, closing at 220 and 222, respectively.

Against Euro, the PKR lost 3 rupees for both buying and selling, closing at 218 and 220 respectively.

Against UAE Dirham, the PKR lost one rupee for both buying and selling, closing at 60 and 60.50, respectively.

Against Saudi Riyal, the PKR lost 50 paisas for both buying and selling, closing at 58 and 58.50, respectively.

Open-market rates for dollar on Thursday

BID Rs 220

OFFER Rs 222