RECORDER REPORT

KARACHI: The rupee on Wednesday extended its gain for the second successive session against the US dollar in the inter-bank market, on account of positive developments on the external front.

At close, the rupee settled at 205.12, with a gain of Rs1.75 or 0.85% against the greenback. The local currency has appreciated Rs6.81 since dropping to its all-time low of Rs211.93 on June 22, 2022.

The development comes after Pakistan received the IMF Memorandum of Economic and Financial Policies (MEFP), following meetings last week between the two sides, Finance Minister Miftah Ismail said on Tuesday.

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

Experts say that the latest development on revival of the IMF programme, which is widely seen as crucial for Pakistan's economy, has improved investor sentiment.

“Expectations of positive news from Saudi Arabia, in the form of an extension in oil credit facility in the wake of chief of army staff General Qamar Javed Bajwa's recent visit to the kingdom has also enhanced sentiments,” Fahad Rauf, Head of Research at Ismail Iqbal Securities, told Business Recorder.

“I believe that the rupee will remain above 200, as anything below this level is not sustainable on account of high inflation,” he added.

The gains in Pak rupee come despite a high current account deficit posted in the month of May, which clocked in at $1.425 billion, compared to $618 million recorded in April, an increase of 131% on a monthly basis, showed data released by the State Bank of Pakistan (SBP).

Rauf was of the view that the latest deficit was expected on account of a slowdown in remittance inflows, which declined by over 25% on a monthly basis.

Open-market movement

In the open market, the PKR gained 1.50 rupees for both buying and selling against USD, closing at 203 and 205, respectively.

Against Euro, the PKR gained 3 rupees for buying while losing one rupee for selling, closing at 212 and 214, respectively.

Against UAE Dirham, the PKR gained 50 paisas for both buying and selling, closing at 55.50 and 56, respectively.

Against Saudi Riyal, the PKR gained 50 paisas for both buying and selling, closing at 54.30 and 54.80, respectively.

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Open Bid Rs 203.00

Open Offer Rs 205.00

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Interbank Closing Rates: Interbank Closing Rates For Dollar on Wednesday

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Open Bid Rs 205.30

Open Offer Rs 205.50

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RUPEE IN LAHORE: The Pak rupee snapped its losing streak and appreciated its worth versus the American dollar and the British pound in the open currency market on Wednesday.

Following lack of buyers’ interest in the market, the US dollar remained under selling pressure throughout the trading session and closed lower for buying and selling at Rs 204.00 and Rs 205.50 against the overnight close of Rs 205.50 and Rs 207.00, respectively, local currency dealers said.

In addition, the local currency also followed suit in relation to the pound sterling that was bought and sold at Rs 246.50 and Rs 248.50 against Tuesday’s close of Rs 249.50 and Rs 251.50, respectively, they added.

Copyright Business Recorder, 2022