KARACHI: The Pakistani rupee staged a handsome recovery on Thursday and appreciated nearly Re1 to Rs175.52 against the US dollar in the inter-bank market after the International Monetary Fund (IMF) agreed to give a $1 billion lifeline to Pakistan under the stalled External Fund Facility (EFF).
Late on Wednesday, the IMF Executive Board completed the sixth review under the EFF for Pakistan, allowing the Pakistani authorities to draw SDR 750 million (about US$1 billion).
According to the State Bank of Pakistan (SBP), the rupee had closed at Rs176.41 against the greenback on Wednesday.
A report of Arif Habib Limited stated that the rupee made the highest day-on-day recovery after 46 sessions i.e. December 31, 2021.
After posting a fresh gain of 0.51%, the Pakistani rupee has depreciated by 11.41% (or Rs17.98) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.
The rupee had maintained the downtrend for the past nine months. It has lost 15.26% (or Rs23.25) to date, compared to the record high of Rs152.27 recorded in May 2021.
Speaking to Geo.tv, Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq said the sentiment is positive and the recovery was in line with the market expectation.
“Moreover, encouraging trade data has also lent support to the rupee,” he said, adding that going forward, the local unit is expected to remain stable.
The analyst, however, was of the view that the currency would trade within the same range and would not appreciate below the 175-barrier.
It is pertinent to mention here that some decline was seen in the importer demand and at the same time the exporters sold dollars, which has improved the supply of the greenback in the market.