Rupee posted massive appreciation against the US dollar in the open-market on Tuesday after economic sentiment improved as Pakistan clinched a deal with the International Monetary Fund (IMF).

The US dollar was being quoted in the range of Rs277-Rs280, a further decrease of Rs8, currency dealers conveyed to Business Recorder. The rates are a far cry from the range of 308-310 dealers were quoting in May-June.

Meanwhile, the market saw an ample supply of greenback, dealers said.

“Due to the IMF programme delay, market players had started hoarding US dollars which led to a spike in rates,” Malik Bostan, President of Forex Association of Pakistan, told Business Recorder.

For the inter-bank market report, click here

“However, this has finally ended after Pakistani authorities secured a last-minute deal with the international lender,” he added.

The currency dealer said that a large number of exporters are bringing in their proceeds to the market, leading to an improvement in supply.

“The local currency would further strengthen after the IMF Executive Board approval in the coming days,” said Bostan.

“However, a deadlock in talks with the lender may create a panic-like situation in the market again.”

The IMF announced on Friday that its staff and Pakistani authorities have reached an agreement on policies to be supported by a $3-billion, nine-month SBA.

The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.

“The new SBA builds on the authorities’ efforts under Pakistan’s 2019 EFF-supported programme which expires end-June,” Nathan Porter, IMF Mission Chief to Pakistan, was quoted as saying in the press release on the day the Extended Fund Facility expired.


Comments are closed.

Ch. K A Nye Jul 04, 2023 01:34pm
Where can I buy $$ at 280 or even 285? Absolutely nowhere as the dealers say that they don't have any $$ available.
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Tulukan Mairandi Jul 04, 2023 02:38pm
The market rate is still 315. Stop lying.
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Fazeel Siddiqui (Overseas Pakistani) Jul 04, 2023 02:51pm
Like PSX, currency market being manipulated on speculations rather economic indicators. Result as always will be panic selling by general public in artificially created depression curve and mafia will make money on loss of commoners. No person of financial literacy is selling right sore of value, USD. Soon Bostan will stop boasting.
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Ali Asghar Jul 04, 2023 05:22pm
@Tulukan Mairandi, Woohoo, Thulu mairandi gone crazy after it's confirmed the rise of Pakistan Economy, possibly now like a 90s era when Indian economy was reeling way behind Pakistan, and now he's seeing the same happening again lol...btw not too long ago, this citizen of occupied India was anxiously awaiting to see Pakistan default which has now reversed
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AmirSh. Jul 04, 2023 06:13pm
Mark my word, this is a temporary relief in currency value. Let's see what happens when they start paying for import bills in coming days. There will be massive demand of dollar once ban on import lifted as per condition set in SBA. Time for FM to face the reality and start thinkin on long term basis.
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