(CTN News) – Pakistan’s rupee reversed the trend against the US dollar on Monday, recording a small gain of 0.35% in the interbank market after recording back-to-back losses over recent sessions.
The Pakistani Rupee closes at 199.06 after a day-on-day appreciation of 0.35%.
According to the State Bank of Pakistan (SBP), the Pakistan rupee closed at 199.06 after appreciating by 0.35% on Friday.
The trend reversed after the traders started selling US dollars as the government increased the price of petrol by Rs30 per liter, a condition of the IMF for resuming the extended fund facility.
Analysts believe the move eased some pressure on the local unit, and a sustained IMF engagement with Pakistan would encourage the flow of funds from China, Saudi Arabia, the World Bank, the Asian Development Bank, and the International Finance Corporation.
As well, Finance Minister Miftah Ismail’s assurance that the deal with the Fund will be finalized this week contributed to the uptrend.
However, dealers noted that fresh developments could change the sentiment on a day-to-day basis.
It started its losing streak due to depleting foreign exchange reserves, but it fell to 186-202 per US dollar this month as reserves fell by about $900 million without any new inflows.