Rupee ends 17-day losing streak, closes at Rs287.38 vs US dollar

WEB DESK: In a noteworthy development on Thursday, the Pakistani rupee successfully halted its 17-day depreciation trend against the US dollar, exhibiting a gain of 0.26 per cent to conclude at Rs287.38.

The previous day had witnessed a 0.09 per cent depreciation, settling the rupee at Rs288.14 against the US dollar.

Analysts attribute this reversal in the rupee’s trajectory to a significant event, namely the consensus reached between Pakistani authorities and the International Monetary Fund (IMF) staff during Wednesday’s discussions.

This agreement, which marks the first review under the nine-month $3 billion Stand-By Arrangement (SBA), is currently pending approval by the IMF’s Executive Board.

Upon approval, Pakistan stands to gain access to SDR 528 million (equivalent to approximately $700 million), bringing the total disbursements under the programme to nearly $1.9 billion.

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Market experts foresee a positive impact on Pakistan’s foreign exchange reserves, anticipating an improvement facilitated by the IMF agreement.

This development is expected to open avenues for funding from both multilateral and bilateral institutions.

On the global front, the US dollar maintained its stability early on Thursday, following a period of volatility characterised by sharp declines and subsequent rebounds.

This fluctuation coincided with interpreters discerning incoming economic data as an indication that the Federal Reserve is likely to delay any immediate interest rate cuts.