Rupee resumes downtrend after market eases on IMF excitement

• Dollar closes at Rs210.95 in interbank market.
• Analyst says IMF programme not enough for Pakistan.
• Market’s excitement about IMF programme has dialed down.

KARACHI: The US dollar on Friday once again soared past the 210-rupee mark in the interbank market after the market’s excitement over the resumption of the International Monetary Fund (IMF) programme dialled down.

According to data released by the State Bank of Pakistan (SBP), the greenback closed at Rs210.95 against the Pakistan rupee in the interbank market after gaining 0.55%.

The rupee made a nominal recovery against the dollar a day earlier after Pakistan and the Fund reached a staff-level agreement, closing at 209.80, according to the central bank.

The disbursement of the $1.17 billion loan is still subject to the IMF Executive Board's approval — meaning that there is still time before Islamabad gets the amount.

AA Commodities Director Adnan Agar said the market believes that a loan tranche worth $1.17 billion from the IMF is "not sufficient" for Pakistan.

"Investors are closely looking at international oil prices with the hope that the reduction in global markets would help save the country's economy," he said.

The analyst, however, added that if the oil prices in the international market drop to $60-70 per barrel then it would benefit Pakistan but this seems difficult as Brent crude is declining because of calls of recession from across the globe. "Once this subsides, oil prices will bounce back."