Rupee gains more value against the dollar as Pakistan’s gradual currency recovery.
In the interbank market on Friday, the Pakistani rupee strengthened more against the US dollar as the nation progressively emerges from the currency crisis in anticipation of the restarting of the International Monetary Fund’s (IMF) loan programme.
After increasing by 2.15 during intraday trading, the local currency was exchanged at 224. On Thursday, it increased 2.65 or 1.17 percent versus the dollar to close at 226.15. Forex traders have connected the trend to a number of variables and predict that the rupee will consolidate its gains in the coming weeks and trade at 210 to the dollar.
“No significant import payments have been made over the past day or two. Exporters are in town to buy and sell dollars in advance. The rupee was supported by these factors as supplies increased, a currency dealer told The News on Thursday.
Expectations that the International Monetary Fund’s (IMF) bailout programme known as the Extended Fund Facility will be resurrected also helped sentiment, the dealer continued. The IMF board is anticipated to ratify a staff-level agreement with Pakistan in the third week of August, according to the State Bank of Pakistan (SBP).
On Wednesday, the Pakistani rupee experienced its best day ever as it increased by Rs9 versus the US dollar. It increased by 4%, the biggest one-day rise since 1999. The weakened currency was supported by the IMF’s upbeat comments, the soft dollar demand from importers for payment, and the dollar selling by exporters.
Trade figures for July lessened rupee pressure, which improved the outlook for the nation’s precarious current account deficit.
In July, the nation’s trade imbalance decreased by 47% month over month to $2.6 billion, primarily due to a decline in imports.
According to data from the Pakistan Bureau of Statistics, total imports decreased to $4.9 billion in July 2022 from $7.9 billion the previous month. A prohibition on some goods and fewer petroleum imports were blamed for the decline in imports.
