The Pakistani rupee (PKR) gained further against the dollar during interbank trade on Thursday, rising as high as 268 against the greenback as technical-level talks with the International Monetary Fund (IMF) draw to a close later this week.
At close, the rupee appreciated by 1.04 percent and suspended movement at 270.51 after gaining Rs. 2.82 against the greenback.
The local unit was all green against the dollar and opened trade at 274. in the open market. By midday, the greenback crashed against the rupee to as low as 267.925 After 1 PM, the local unit was still bullish against the top foreign currency before the interbank close.
Independent economic analyst A H H Soomro told ProPakistani,
Islamabad vibes appear scary but should smoothen out. We know we don’t have a choice. We will do whatever it takes to revive IMF. The one-on-one meeting between Dar and Nathan was critical. Storm would subside for a few months.
Today’s gains come after markets reacted positively to talks with the IMF. Finance Minister Ishaq Dar said on Thursday that talks between Pakistan and the lender are “on track” and that “good news will be announced soon. Dar told the media that talks between the two sides had reached the final stage. Earlier on Wednesday, Dr. Aisha Ghaus Pasha, Minister of State for Finance, stated that an agreement had been reached with the IMF and that clearance had been obtained at the prime minister level.
The Memorandum of Economic and Financial Policies (MEFP) to the Pakistani authorities is expected later today.
More information is expected late on, while a technical-level breakthrough could be announced as early as tomorrow morning. This would potentially pave the way for both parties to start working on a staff-level agreement that would unlock a bailout tranche exceeding $1.1 billion for Pakistan.
Despite today’s welcoming gains, the rupee is still down over Rs. 39 since its record-breaking single-day drop of Rs. 25 in the last week of January after the currency was finally ‘freed’ against the US dollar in the inter-bank market. As per market trends and fiscal developments observed today, the PKR has managed to gain almost Rs. 3 for the second consecutive day today.
The PKR was bullish against all of the other major currencies in the interbank market today. It gained 76 paisas against the Saudi Riyal (SAR), 76 paisas against the UAE Dirham (AED), Rs. 2.64 against the Australian Dollar (AUD), Rs. 2.78 against the Canadian Dollar (CAD), and Rs. 3.41 against the Pound Sterling (GBP).
Moreover, it gained Rs. 3.50 against the Euro (EUR) in today’s interbank currency market.