Rupee records highest single-day gain of Rs9.8 against dollar

Rupee records highest single-day gain of Rs9.8 against dollar

A currency dealer is counting notes of $100 while Rs5,000 notes are placed on the table.

KARACHI: Pakistan’s rupee surged Wednesday after reports of a drop in imports implemented in July after canceling all previous measures to revive the International Monetary Fund’s (IMF) lending program $
fell by 9.58 rupees or 4.19% in the interbank market to close at 228.80 against the rupee, down from Tuesday’s close of 238.38.

On the open market, the dollar lost 14.50 rupees to close at 226, according to the Pakistan Forex Association.
The rupee, one of the world’s worst-performing currencies, fell sharply for the 10th time in a row on the last day of July, and the dollar fell on Friday after falling about 5% in the last week alone. started.
Local units gained ground after the country experienced a decline in imports.

According to forex traders, there are no dollar buyers given the volatility of the forex market.
Imports fell 38.3% month-on-month after the government banned a range of luxury goods to protect against a dollar shortage in the economy, according to data from the Pakistan Bureau of Statistics (PBS).

Not only did imports fall, but so did exports. However, pressure on the rupee eased as the trade deficit shrank 18.3% from $3.235 billion in July 2021 to $2.64 billion in July 2022. I was. As of June 2022, the gap he had was $4.96 billion. Tahir Abbas, head of research at Arif Habib Limited, told that the currency has stabilized and is expected to continue to appreciate as import pressure eases and demand declines.

‘External account data is encouraging’

Capital markets expert Muhammad Saad Ali said the external account data were promising and would continue to boost the economy.

The rupee also rose after the International Monetary Fund (IMF) said Pakistan had met its latest prerequisite – a tax hike on petroleum products – in his seventh and eighth reviews together.

The IMF’s Pakistani representative, Esther Perez Ruiz, said in a statement on Tuesday that the board is tentatively scheduled for late August, once sufficient funding commitments are confirmed. In light of testimony from
lenders, Abbas said further inflows from friendly countries, in addition to her IMF tranches expected by the end of this month, would also play a role in stabilizing the economy.

Pakistan’s rupee has fallen more than 30% against the dollar this year, and the country’s dollar debt hits a record low as she faces a $1 billion bond payment in December.

Resumption of IMF program

“The flow of news that Pakistan is nearing the resumption of IMF programs – such as the IMF’s recognition that Pakistan has met all its previous conditions, optimism for greater future macroeconomic stability. It’s fueling controversy,” Ali said.
Discussing the ongoing political situation, he noted that both the government and the PTI were pushing for breakup elections that could “delay the steps” needed to ensure macroeconomic stability. He said he couldn’t see it.

Credit/Source : THENEWSPK

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