KARACHI: The Pak Rupee witnessed significant appreciation against dollar on Friday owing to cut in discount rate and $1.38 billion loan approval by the IMF.
The rupee gained Rs3.30 to close at Rs163.58 to the dollar from previous day’s closing of Rs166.88 in interbank foreign exchange market.
Currency dealers said that the rupee witnessed massive gain against dollar as the State Bank of Pakistan (SBP) cut policy rate by 200 basis points to nine percent.
The central bank reduced the policy rate third time in last one month considering significant adverse effect of coronavirus on the economy,
The sources said that the rate cut would help in improving economic activities.
The Executive Board of the International Monetary Fund (IMF) a day earlier approved the disbursement of $1.386 billion under the Rapid Financing Instrument to address the economic impact of the Covid-19 shock.
The currency dealers said that the rupee may witness further appreciation in coming days due to falling international oil prices and reduction in non-oil imports.