Pak rupee climbs 4.19% against US dollar

There are some positive news for the economy and the rupee’s recovery is reflected the market sentiments

Read more...
In intra-day trading on Wednesday, the rupee improved to 226.49 (61.71 against the dirham), but shed some value in the final session. — File photo
by

Muzaffar Rizvi

Published: Wed 3 Aug 2022, 8:09 PM

Last updated: Wed 3 Aug 2022, 10:19 PM

The Pakistani rupee on Wednesday staged a strong rebound against the US dollar amid hopes that the International Monetary Fund (IMF) will release $1.2 billion funds after meeting all the tough conditions while the import payments’ pressure also subsided following drop in petroleum prices in international market.

“The rupee appreciated 4.19 per cent, or 9.58, to 228.9 (62.34 against the UAE dirham) against the greenback in the interbank market compared to 238.38 (64.95 against the dirham) on Tuesday.

Advertising
Advertising

In intra-day trading on Wednesday, the rupee improved to 226.49 (61.71 against the dirham), but shed some value in the final session.

In the open market, the rupee gained 11.50 against the US dollar and closed at 229. The currency recovered 18 rupees against the euro and closed at 228.

IMF funds disbursement

On Tuesday, the IMF said that Pakistan has met all prior conditions for the combined seventh and eighth review under the $6 billion extended fund facility (EFF).

"With the increase in petroleum development levy (PDL), Pakistan has completed the last prior action for the combined seventh and eighth review," the IMF said. However, it mentioned that the fund’s executive board meeting is tentatively scheduled for late August to take a final call to disburse the $1.2 billion tranche.

Forex market consolidation

In a research note on Wednesday, Trust Securities and Brokerage Limited said that the forex market is likely to consolidate after a continued drop in imports and anticipated correction in demand going forward.

“It is expected that Pakistan will get a $1.2 billion tranche under the EFF programme by the end of August as the country has met all prior actions to release the funds,” according to the note.

Rupee reacted to positive news

Secretary Zafar Paracha, General Secretary, Exchange Companies Association of Pakistan, said the rupee will continue to appreciate against the US dollar after the disbursement of funds from the IMF.

“There are some positive news for the economy and the rupee’s recovery reflected the market sentiments. Oil and edible oil imports have also declined, which takes pressure off the currency,” Paracha said.

muzaffarrizvi@khaleejtimes.com

Muzaffar Rizvi

Published: Wed 3 Aug 2022, 8:09 PM

Last updated: Wed 3 Aug 2022, 10:19 PM

Recommended for you