Rupee gains against dollar, closes at 204.56

The rupee sustained its recovery for a fourth successive session on Monday, gaining a marginal 0.14% against the US dollar on the back of anticipation that the International Monetary Fund (IMF) bailout programme would be revived.

The local currency closed at 204.56, an appreciation of Rs0.29 or 0.14% against the US dollar. The rupee has appreciated Rs7.37 since dropping to its all-time low of Rs211.93 on June 22, 2022.

The improvement comes as Pakistan moves to fulfill conditions laid down by the IMF with the market now expecting a rather smooth resumption of the programme.

Last week, Pakistan received the IMF Memorandum of Economic and Financial Policies (MEFP), following meetings between the two sides.

Additionally, Prime Minister Shehbaz Sharif has said that the IMF will club the seventh and eighth reviews of Pakistan's Extended Fund Facility (EFF), and disburse roughly $1.9 billion.

Rupee gains against dollar, closes at 204.85

Experts say the latest developments on the IMF programme, widely seen as crucial for Pakistan's economy, has improved investor sentiment.

Pak-Kuwait Investment Company Head of Research Samiullah Tariq said progress in talks between Pakistan and IMF is driving optimism in the currency market.

“There is anticipation in the market that IMF will announce resumption of the Extended Fund Facility very soon and this is causing the appreciation,” Tariq told Business Recorder.

“Rupee is witnessing recovery as the government has passed on the impact of high fuel cost to the consumers and ended the subsidy.”

He highlighted that owing to spike in the prices of petroleum products, oil consumption has fallen, which is signalling a drop in the import volume and aiding the local currency.

Inter-bank market rates for dollar on Monday

BID Rs 204.80

OFFER Rs 205

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 203 and 205, respectively.

Against Euro, the PKR lost 3 rupees for both buying and selling, closing at 213 and 215, respectively.

Against UAE Dirham, the PKR lost 60 paisas for buying and 50 paisas for selling, closing at 55.30 and 55.80, respectively.

Against Saudi Riyal, the PKR gained 50 paisas for both buying and selling, closing at 53.80 and 54.20, respectively.

Open-market rates for dollar on Monday

BID Rs 203

OFFER Rs 205