PKR up 0.25% to close at Rs285.99 against US dollar

KARACHI: The Pakistani rupee on Tuesday continued its gaining streak against the US dollar with an appreciation of 0.25% in the interbank.

At close, the currency settled at 285.99, an increase of Rs0.72, as per the State Bank of Pakistan (SBP).

On Monday, the rupee recorded a slight increase against the US dollar, registering an appreciation of 0.01% to settle at 286.71.

In a key development, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) in its emergency meeting held on Monday decided to increase the benchmark policy rate by 100 basis points (bps) to a record high of 22% on deteriorated inflation outlook followed by imposition of new taxes in the budget.

Cumulatively, the MPC has raised the policy rate by 825bps during this fiscal year (FY23) to control rising inflation.

Separately, Prime Minister Shehbaz Sharif has said that Pakistan expects a decision on the International Monetary Fund’s (IMF) stalled bailout programme within a day or two after holding a phone call with Managing Director Kristalina Georgieva on Tuesday.

Pakistan’s ninth review by the IMF under the 2019 Extended Fund Facility (EFF) for the release of a $1.2bn tranche is still pending with fewer than 10 days remaining the programme’s expiry on June 30.