Pakistani rupee rises by 10.5 against dollar

 KARACHI: After the government reached an agreement with the International Monetary Fund (IMF), the Pakistani rupee appreciated significantly during intraday trade on Tuesday on the interbank market.       The country obtained a $3 billion short-term financial package from the IMF on Friday, providing the economy with some long-needed relief as it teeters on the verge of going into default. The local currency increased by Rs10.5 or 3.83% in the interbank market to close at Rs275.44 in relation to the US dollar. On June 27, the last trading day before the Eid holidays, it reached a closing price of 285.99. On May 11, the dollar soared to a new all-time high of Rs290.93 in the interbank market. It has since reported a decrease of Rs23.43.

“Speaking to media, Topline Securities CEO Mohammad Sohail said that the rupee has gained up to 3% as expected.he sustainability of the gains will be confirmed in the coming days as the government claims that the partial funds under the deal will be disbursed by the mid of July.”

Sohail added that the government has also claimed that it would secure around $4-$5 billion from Saudi Arabia, the United Arab Emirates, and the Islamic Development Bank — which would improve the dollar liquidity issues.

The Topline Securities chief executive said that if these payments materialise, the rupee will likely remain strong and stable.

“However, the pressure could increase if the payments get delayed.”

If we believe the government’s claims that Pakistan’s reserves will increase to $14 billion by August, then the rupee will likely stabilise around 270 or 280, he added.

Agencies