- Optimism over resumption of IMF programme revives sentiment in money market
The rupee continued its recovery against the US dollar on Thursday and appreciated 0.37% as government’s optimism over revival of the International Monetary Fund (IMF) programme and receipt of $2.4 billion from China reversed sentiment in the currency market.
Owing to improved spirits, the rupee gained 75 paisa or 0.37% to close at 200.77 on Thursday.
The rupee made a decent recovery against the US dollar on Wednesday as well, appreciating nearly 0.65% in the inter-bank market as pressure due to import payments seemed to have subsided.
The currency hit a record low of Rs202.83 against the greenback on Tuesday.
Ismail Iqbal Securities Head of Research Fahad Rauf told Business Recorder that the market attained much-needed clarity on the resumption of IMF programme and hence, the rupee is appreciating.
The $6-billion bailout programme was stalled last year. However, talks on its revival have been ongoing.
"Prime Minister Shehbaz Sharif and Finance Minister Miftah Ismail have cited that Pakistan is making all-out efforts to resume the IMF programme. Hence, players in the currency market are relieved and rupee received support," added Rauf.
“Moreover, PM Shehbaz has also stated that Pakistan will receive the due amount from China in 2-3 working days which will further bolster the local currency against the greenback,” he said. “This news in particular reversed the sentiment in the currency market."
“Improvement in rupee comes as the likely completion of oil import payments has diffused demand for dollar in the market,” Tahir Abbas, Head of Research at Arif Habib Limited (AHL), told Business Recorder a day earlier.
Meanwhile, the government has also moved to pacify economic sentiment in the country, taking various measures as it looks to rein in current expenditure.
While unveiling the Pakistan Economic Survey, Finance Minister Miftah Ismail also expressed hope that foreign exchange reserves held SBP will rise to $12 billion in the coming days after the inflow from China is recorded.
Inter-bank market rates for dollar on Thursday
BID Rs 201
OFFER Rs 201.20
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 201 and 202.50, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 214 and 216, respectively.
Against UAE Dirham, the PKR lost 20 paisas for both buying and selling, closing at 54.70 and 55.20, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 53.50 and 54, respectively.
Open-market rates for dollar on Thursday
BID Rs 201
OFFER Rs 202.50