The rupee continued its appreciation against dollar and closed at 158.91 in the inter-bank market on Monday. This is the strongest position rupee has held against dollar in six and a half months.
Earlier, the State Bank Of Pakistan (SBP) let the rupee depreciate massively in the inter-bank market after finalisation of an agreement with the IMF for a loan programme on May 12, 2019. The IMF has asked Pakistan to end state control of the rupee and let the currency move freely to find its equilibrium against the US dollar and other major world currencies.
Since August 26, the greenback has seen a decline of 9.52 rupees, a percentage decline of 5.6 percent.
The dollar in the open market was down by 50 paisa and was trading at 158.80.
One of the main reasons for the appreciation is the current account being in surplus. The SBP reserves have kept on building due to this and flurry of flows from multilateral agencies.