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Sunday, June 9, 2024

Pakistani Rupee starts showing signs of life

After hitting rock bottom at around 240 rupees per dollar, Pakistani rupee slightly recovers

For the second consecutive trading day, the Pakistani rupee has been stable. On August 1, the interbank market saw a further nominal recovery of 0.22 percent to Rs238.84 against the US dollar.

According to figures from the State Bank of Pakistan, the rupee had closed at Rs239.37 on the final trading day of July, making it the second worst month for the national currency since Pakistan’s founding.

Despite strengthening by more than one Pakistani rupee on Tuesday, the rupee unexpectedly maintained its value versus the US dollar for the second straight day. The exchange rate dropped from Rs238.84 in early interbank trading to Rs238 according to currency dealers, who claim that the US dollar lost 84 paisas in value.

Read more: SBP official explains “Why is the Rupee always depreciating?”

stabiAccording to the most recent update, rupee has shown a recover of 0.19% against the US dollar.

Earlier in his news conference, Finance Minister Miftah Ismail sounded upbeat, anticipating that the rupee’s pressure will subside in two weeks and things would get simple. He claimed that a decrease in our import bill had resulted in an improvement in the value of the rupee, which was encouraging. Ismail acknowledged that following the July 17 Punjab by-elections, the dollar had gotten out of control, but he argued that he still believed the rupee was worth far more than where it was at the time.

The news that the International Monetary Fund (IMF) will probably start distributing the seventh and eighth tranches of a $6 billion loan package for Pakistan later this week has also improved market confidence. 2019 saw the signing of the $6 billion bailout agreement known as the Extended Fund Facility (EFF). A $1.7 billion (seventh and eighth) tranche, however, has been delayed after the IMF voiced concerns about Pakistan’s adherence to the agreement earlier this year.

The foreign exchange reserves of the State Bank of Pakistan (SBP), which were estimated to be worth $11.425 billion at the end of March, gradually declined to $8.575 billion as of July 22.