Rupee Rebounds Against US Dollar As Markets Take a Breather

The Pakistani rupee (PKR) reversed losses and posted encouraging gains against the US Dollar today.

The Pakistani rupee was largely stable throughout intraday trade today with the interbank rate gaining ~Rs. 2 to reach 282.19 by 11 AM. By 1:25 PM, it dropped to 284-48 and stayed at this level.

At close, the PKR appreciated by 0.29 percent to close at 283.90 after gaining 81 paisas during intraday trade today.

The rupee reported gains today after market sentiments stabilized momentarily with nothing definitive happening throughout the intraday. Traders said recent comments from the International Monetary Fund (IMF) continued to offer so respite. It said it is looking forward to obtaining the necessary financing assurances as soon as possible to pave the way for the successful completion of Pakistan’s 9th EFF review.

The IMF is seeking “necessary” financing assurances as soon as possible in order to conclude talks with Pakistan on its stalled bailout, according to Nathan Porter, the Fund’s mission chief in Pakistan.

The lender had requested that Pakistan arrange $6 billion in external financing, which the struggling $350 billion economy requires from now until June to avoid default. It should be noted that the $6 billion financing gap was calculated assuming a current account deficit of around $7 billion in the current fiscal year.

Pertinently, the rupee is down nearly Rs. 54 since January 2023. Since April 2022, it is down over Rs. 101 against the greenback. As per exchange rate movements witnessed today, the PKR has observed gains of over 80 paisas against the dollar.