Rupee continues recovery against dollar for second consecutive day

• Zafar Paracha terms rupee's appreciation "good day" for the economy.
• Capital market expert says rupee rallied due to rising optimism in market.
• The dollar depreciated amid news that Pakistan was close to clinching deal with IMF.

KARACHI: For the second straight session, the local currency on Thursday appreciated against the dollar amid news that the International Monetary Fund (IMF) would hand over the draft memorandum of economic and financial policies (MEFP) to Pakistan today.

In the interbank market the rupee closed at Rs270.50 appreciating by 2.83 against the dollar. The greenback had closed at Rs273.33 a day earlier.

Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha termed it a "good day" for the economy. 

"The main reason behind [rupee's appreciation] is the staff-level agreement between Pakistan and IMF drawing closer, with sources claiming that the talks went successful," said Paracha. 

The currency dealer said that another factor that led the rupee to gain in the interbank market was that the exporters who had held payments started encashment and the inflow of remittances from overseas Pakistanis has also started.

"The economy will be better in the coming days and foreign direct investments will also be received," predicted Paracha. 

Capital market expert Saad Ali told Geo.tv that the rupee rallied due to the rising optimism in the market about economic stability led by news of investments by Qatar in state-owned assets. 

He agreed that news of IMF talks ending on a positive note was also a factor for the local currency to gain ground.