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KARACHI: The Pakistani rupee on Tuesday appreciated nearly 4 percent against the US dollar in the interbank market in the first trading session after the country secured last-minute funding from the International Monetary Fund (IMF).
Interbank closing #ExchangeRate for today https://t.co/hvtS9Cxq8l#SBPExchangeRate pic.twitter.com/iKvepZnJq6
— SBP (@StateBank_Pak) July 4, 2023
The country on Friday secured a $3 billion short-term financial package from the IMF, giving the economy some much-awaited respite as it teeters on the brink of default.
At close, the currency settled at 275.44, an increase of Rs10.55, as per the State Bank of Pakistan (SBP).
“This is the highest DoD recovery after 12 May 2023 (Rs 13.85 or 4.86%),” Arif Habib Limited (AHL) was quoted as saying in Business Recorder.
The rupee stood closed at 285.99 against the dollar on June 27. Markets were shut for the Eid holidays last week and a bank holiday on Monday.
In the open market, the currency also jumped by Rs10 to reach Rs280 against the greenback this morning.
Experts said the first IMF tranche of $1-1.25 billion is expected in July and new loan inflows from other multilateral creditors and friendly countries of around $1.5-2 billion would soon help in rebuilding the country’s foreign exchange reserves and support the rupee against the greenback.
Although the reserves recovered to over $4 billion, they still remained critically low providing only one-month import cover.
