US dollar turns the tables on Pakistani rupee in interbank

By: News Desk
Published: 10:41 AM, 8 Mar, 2023
US dollar turns the tables on Pakistani rupee in interbank
Caption: Representational image.
Stay tuned with 24 News HD Android App
Get it on Google Play

The US dollar has turned the tables on the Pakistani rupee as it appreciated by Rs1.25 despite being on the defensive when the trading opened in the interbank market on Wednesday, reported 24NewsHD TV channel.

According to the State Bank of Pakistan, the greenback went up by Rs1.25 and closed at Rs279.12 in the evening despite being down by 87 paisas in the morning session.

Yesterday, the Pakistani rupee appreciated by 5 paisa against the US dollar and settled the trade at PKR 277.87 per USD.

According to economic experts, the market was upbeat over the possible deal with the International Monetary Fund and $1.3 billion rollover facility by the Industrial and Commercial Bank of China Ltd (ICBC) which will be disbursed in three instalments. 

Recent reports suggest that the IMF will sign a staff-level agreement (SLA) before the end of this week, as the government has successfully fulfilled all the Fund’s reform prerequisites, including the development of reserves.

The experts believe that the local currency would appreciate further once the IMF agreement was reached and it would also unlock inflows from friendly countries. They expect that the dollar rate would decline to Rs260-265 after the revival of IMF programme. 

Apart from this, the State Bank of Pakistan (SBP) received a significant boost of $700 million from China in February, which helped to shore up its fast depleting foreign exchange reserves.

Reporter Ashraf Khan 

Categories : Business