PKR appreciates Rs8.34 in interbank
A day after plummeting to an all-time low, the Pakistan rupee on Friday recovered Rs8.34 against the US dollar, with analysts attributing it to expectations that the government would reach an agreement with the International Monetary Fund (IMF).
The local currency was changing hands at Rs276.75 per dollar in the interbank market at 11am, an appreciation of Rs8.34 from yesterday’s close of Rs285.09, data shared by the Exchange Companies Association of Pakistan (Ecap) showed.
Saad Bin Naseer, director of financial data and analytics portal Mettis Global, told Daily City News that after the rupee’s fall yesterday, a sense of panic had prevailed in the market and people thought that the IMF programme won’t be completed.
“Nobody was ready to sell dollars. In the black market, the greenback was being sold at Rs290-295,” he said. “Even banks were quoting the rates against the payments.”
However, Naseer continued, the announcement of the monetary policy and the 300 basis point increase in interest rates indicated that the government was serious about the IMF programme.
He hoped that the agreement with the global lender will be signed within this week. “Once that happens, you will see that the dollar, which is overvalued right now, will come down to Rs260 or below,” Naseer added.