It was another day of relief for forex traders on Tuesday when the Pakistan rupee appreciated by 1.07 against the US dollar in the interbank trading and closed at Rs 206.87 against the previous day’s closing of Rs 207.94.
According to the Forex Association of Pakistan (FAP), the buying and selling rates of dollars in the open market were recorded at Rs 206.5 and Rs 208.75 respectively.
The rupee appreciated after the announcement by the finance minister that Pakistan received the Memorandum of Economic and Financial Policies (MEFP) from International Monetary Fund (IMF) for the combined 7th and 8th reviews.
Earlier in the morning trade, rupee gained 1.19 against the US dollar.
Experts are of the view that this was the most significant step to validate that both sides have reached an agreement for the revival of $6 billion programmes.
Speaking to Mettis Global, Zafar Paracha, President of Exchange Companies of Pakistan said, “Despite the expected inflows from IMF, China and Saudi Arabia, rupee will remain under pressure in the long term as the government has to repay debts in FY23.”
Earlier on Friday, the State Bank of Pakistan (SBP) received a $2.3 billion loan from a Chinese consortium that also improved traders’ sentiments.
From July ’21 to date, the local unit has lost Rs49.33 against the USD. Similarly, the rupee fell by Rs30.36 in CY21, with the month-to-date (MTD) position showing a decline of 4.07%, as per data compiled by Mettis Global.
During the last year, rupee lost 23.85% against the greenback while reaching its lowest at 211.93 on June 22, 2022, and the highest of 157.54 on June 30, 2021.
Furthermore, the local unit has weakened by 14.72% since its high on July 02, 2021, against EUR while, it has dropped by 14.46% against GBP since its high on July 02, 2021.