KARACHI: The Pakistani currency stopped a two-day losing skid on Monday, gaining 0.27 percent in the interbank market versus the US dollar, an improvement that comes after the rupee hit new lows in the previous two days.
According to figures supplied by the State Bank of Pakistan, the local currency finished at Rs174.77, up 0.27 percent or 47 paisas (SBP).
The recovery was aided by news from the International Monetary Fund (IMF) that the long-awaited staff-level agreement with Pakistan had been reached.
Analysts predict that this accord will have a stronger influence on the currency market, easing pressure on Pakistan’s rupee.
The rupee has been under severe pressure in recent weeks, with the currency suffering from a growing current account deficit and a record large trade imbalance.
With the Fund’s clarification, this agreement will now assist release considerable funds from bilateral and multilateral partners, easing the strain on the local currency even further.