Rupee Gains Further Against US Dollar After IMF News and Oil Drop

The Pakistani Rupee (PKR) maintained its positive growth against the US Dollar (USD) and posted gains during intraday trade today.

It appreciated by 0.19 percent against the USD and closed at Rs. 238.38 after gaining 46 paisas in the interbank market today. The local unit quoted an intra-day low of Rs. 239.45 against the USD during today’s open market session. Since the regime change, the greenback is still up by Rs. 50.51 against the PKR.

The rupee closed in the green for the third day in a row on Tuesday after the International Monetary Fund (IMF) confirmed that Pakistan has fulfilled the last of the prior actions required by the lender for the approval of the combined 7th and 8th review program. Talking to ProPakistani, Resident Rep Esther Perez Ruiz informed, “With the increase in PDL on 31 July, the last prior action for the combined 7th and 8th review has been met. The Board meeting is tentatively planned for late August once adequate financing assurances are confirmed.”

Experts also suggest that the shrinkage of the import bill by $2.7 billion in July was one of the factors for the local unit’s revitalized spurt in the currency market. Moreover, the recent political and economic certainty in the country has also supported the growth.

Globally, oil prices again fell on Tuesday as merchants absorbed a bleak forecast for fuel demand with data pointing to a global manufacturing downturn just as OPEC+ nations meet this week to decide whether to increase supply.

Brent crude was down by 1.05 percent at $98.98 per barrel, while the US West Texas Intermediate (WTI) also fell and went down by 0.89 percent to settle at $93.05 per barrel.

The PKR reported gains against the other major currencies in the interbank market today. It gained 12 paisas against UAE Dirham (AED), 14 paisas against the Saudi Riyal (SAR), Rs. 1.38 against the Pound Sterling (GBP), Rs. 1.48 against the Canadian Dollar (CAD), and Rs. 2.81 against the Australian Dollar (AUD).

Moreover, it gained 93 paisas against the Euro (EUR) in today’s interbank currency market.