Rupee makes recovery of 0.54% to Rs280.77 a dollar

The unstable Pakistani rupee made a noteworthy rebound of 0.54%, or Rs1.53, to close at Rs280.77 against the US dollar in the interbank market on Friday amid optimism for the reinstatement of the International Monetary Fund (IMF) loan programme.

The local currency had already lost a total of 1.57% over the previous two days, or Rs4.43, to reach Rs282.30/$ on Thursday, according to the State Bank of Pakistan (SBP).

The currency has recently recovered, according to an analyst, following Finance Minister Ishaq Dar’s Thursday statement that Pakistan will reach a staff-level agreement with the IMF in a few days as the government remained dedicated to finishing the $6.5 billion loan package.

Today, media headlines drive the rupee-dollar exchange rate rather than market supply and demand, the expert claimed.

Prior to then, the central bank reported that the rupee’s previous record low was Rs285.09/$ on March 2, 2023.

The rupee-dollar exchange rate will be determined in the near future by developments regarding the IMF programme’s restart, receipt of the following $1.1 billion tranche from the fund, as well as other new debt inflows.

Indications of a revival will strengthen the rupee against the US dollar, whereas rumours of a delay in the program’s resumption will put pressure on the rupee against the dollar going forward, according to Dar.