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.

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“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.