Pakistani rupee breaks losing streak, gains 0.27% against US dollar
Recovery comes on back of confirmation from IMF regarding much-awaited staff-level agreement with Pakistan
- The local currency settles at Rs174.77 on Monday.
- Recovery comes on back of the confirmation from IMF regarding the much-awaited staff-level agreement with Pakistan.
- Analysts expect the currency market to see a greater impact of IMF agreement.
KARACHI: The Pakistani currency broke a two-day losing streak on Monday, gaining 0.27% against the US dollar in the inter-bank market, an increase that comes after the rupee registered fresh lows in the past two days.
The local currency closed at Rs174.77, an appreciation of 0.27% or 47 paisas, according to data released by the State Bank of Pakistan (SBP).
The recovery came on the back of the confirmation from the International Monetary Fund (IMF) regarding the much-awaited staff-level agreement with Pakistan.
Analysts expect the currency market to see a greater impact, and this agreement would ease off the pressure on Pakistan's rupee.
The rupee has been under immense pressure in recent weeks, with a widening current account deficit and historically high trade deficit taking a toll on the currency.
However, with clarity from the Fund, this agreement will now help unlock significant funding from bilateral and multilateral partners which will further ease the pressure on the local currency.