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Rupee gains Rs4.50 against US dollar in open market

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KARACHI: The PKR on Monday gained Rs4.50 against the US dollar in the open market during the intraday trade after the Finance Ministry and State Bank of Pakistan (SBP) assured the market rupee’s appreciation and gave a roadmap for the ongoing fiscal year to overcome the economic crisis.

Finance Ministry and the central bank, in a joint statement, assured that the country’s problems were temporary and being forcefully addressed.

The SBP and Finance Ministry said that the rupee has been overshot temporarily, but it is expected to appreciate in line with fundamentals over the next few months.

The statement assured that all prior actions for the International Monetary Fund’s (IMF) review were completed and the Executive Board’s meeting for the release of the $1.2 billion loan is expected in a couple of weeks.

It also mentioned that macroeconomic policies — both fiscal policy and monetary policy — have been appropriately tightened to reduce demand-led pressures and rein in the current account deficit, which is a major challenge for the government.

In the open market, the local currency appreciated by 4.50 and dropped to 243.50 against the dollar. Meanwhile, the rupee made minor gains in the interbank market by Rs0.12 and reached 239.25 against the greenback.

The gain in the open market also came after the state bank last Friday injected Rs 1,240.75 billion into the money market for 63 days through its open market operation.

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