The Pakistani Rupee (PKR) substantially recovered against the US Dollar (USD) and posted massive gains during intraday trade today amid market sentiments that the International Monetary Fund (IMF) would soon release $1.17 billion for Pakistan under its Extended Fund Facility (EFF).
Also, the local unit gained further ground after Pakistan’s import bill witnessed a massive decline of almost $3 billion in July.
By midday, the local unit had gained Rs. 10.38 against the greenback and was trading at Rs. 228 in the open market. This is the highest intraday gain in a week and the third biggest in over three years. Despite today’s gains, the dollar is up by Rs. 40.13 (intraday) against the PKR.
By 2 PM, the rupee had gained over Rs. 11 against the greenback to below 227, its highest ever single-day again since research institutions started recording currency data in Pakistan.
The US$ initially gradually lost ground on Friday after the rupee — one of the world’s poorest performing currencies — fell for ten straight sessions and depreciated by about 5 percent.
According to data from the Pakistan Bureau of Statistics (PBS), imports fell by 38.3 percent over the previous month, as the government prohibited a number of luxury commodities in order to manage the economy’s currency shortfall.
Bulls took control of the currency after the IMF on Tuesday 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.
This is an intraday market update.