The Pakistani Rupee (PKR) continued to recover against the US Dollar (USD) and posted gains in the interbank market today.
It appreciated by 0.35 percent against the USD and closed at Rs. 199.06 after gaining 69 paisas in the interbank market today. The local unit hit an intra-day high of Rs. 198.73 against the USD during today’s open market session.
The rupee closed in green against the dollar for the second consecutive day after Finance Minister Miftah Ismail, on Saturday, revealed that China has agreed to provide a commercial loan to Pakistan. Addressing a press conference at the time, Miftah expressed hope that a staff-level agreement with the International Monetary Fund (IMF) would be signed next month, allowing Pakistan to borrow $8 to $9 billion from other foreign lending institutions, including the World Bank (WB) and Asian Development Bank (ADB).
It is pertinent to mention that an agreement with the IMF is Pakistan’s only resort to obtaining funds at the moment, as the global bond market and leading commercial banks have refused to offer support. According to the Finance Minister, Pakistan requires funds in the range of $36-37 billion for the upcoming fiscal year beginning in June, and a deal with the global lender would help attract more investment from foreign sources.
Globally, oil prices rose on Monday, hitting their highest in more than two months. Brent crude stayed above $119 after briefly edging $120, and the US West Texas Intermediate (WTI) crude formed new resistance at $115 per barrel.
The PKR recovery also continued against most of the other major currencies in the interbank market today. It gained 18 paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), 48 paisas against the Euro (EUR), and 66 paisas against the Pound Sterling (GBP).
Conversely, it lost 20 paisas against the Canadian Dollar (CAD) and 45 paisas against the Australian Dollar (AUD) in today’s interbank currency market.
