Rupee sees appreciation after IMF board’s nod, settles at 276.46 against US dollar

The Pakistani rupee registered a gain against the US dollar, appreciating 0.37% on Thursday after the International Monetary Fund (IMF) Executive Board approved Pakistan’s new Stand-By Arrangement and UAE also deposited $1 billion.

At close, the currency settled at 276.46, an increase of Rs1.02, as per the State Bank of Pakistan (SBP).

On Wednesday, the Pakistani rupee strengthened further, inching up 0.39% to settle at 277.48 in the inter-bank market.

In a key development, the IMF’s Executive Board on Wednesday approved a nine-month Stand-By Arrangement (SBA) for Pakistan for an amount of $3 billion. The Board’s approval allows for immediate disbursement of SDR894 million (or about US$1.2 billion).

The Fund stated that Pakistan’s’ economic reform programme aims to support immediate efforts to stabilise the economy and guard against shocks while creating the space for social and development spending to help the people of Pakistan.

Separately, Pakistan also received deposits of $1 billion from the United Arab Emirates (UAE), Finance Minister Ishaq Dar announced on Wednesday.

In a televised message, the finance minister said the friendly country had made a commitment in the recent past regarding giving additional $1 billion deposits to Pakistan.

Internationally, US dollar was nudged lower still in Asia on Thursday, as traders took surprisingly slow US inflation as a signal US interest rate rises will be all but finished by month’s end.

The dollar had its worst session in five months overnight, falling more than 1% against the euro to its lowest in more than a year and notching even larger losses elsewhere.

The US dollar index fell marginally to 100.47, its lowest since April 2022.

Oil prices, a key indicator of currency parity, hovered above $80 a barrel on Thursday, fuelled by US inflation data that presaged the interest rate hike cycle in the world’s biggest economy is set to finally cool.

Inter-bank market rates for dollar on Thursday

BID Rs 276.30

OFFER Rs 276.50

Open-market movement

In the open market, the PKR gained 1.00 rupee for both buying and selling, against USD, closing at 277.00 and 280.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 302.00 and 305.00 respectively.

Against UAE Dirham, the PKR lost 50 paisa for both buying selling, closing at 76.00 and 76.70, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for both buying and selling, closing at 72.50 and 73.20, respectively.

Open-market rates for dollar on Thursday

BID Rs 277.00

OFFER Rs 280.00