KARACHI: The Pakistan Rupee (PKR) gained 70 paisas against the dollar on Monday owing to positive talks between the country and the International Monetary Fund (IMF) regarding continuation of loan program.
The rupee ended Rs186.05 to the dollar from last Saturday’s closing (April 23, 2022) of Rs186.75 in the interbank foreign exchange market.
Currency analysts attributed the appreciation in rupee value to recent talks of Pakistan’s new finance minister with the management of the IMF regarding initiation of stalled loan program.
Further, both the sides also agreed to remove unnecessary subsidy to ease burden on the government to spare funds for development projects.
The exchange rate is remained volatile during past one month due to uncertain political situation and massive decline in foreign exchange reserves.
The recent measures of the State Bank of Pakistan (SBP), including raising the key policy rate by 2.5 per cent, have failed to support the local currency.
Previously, the rupee made significant recovery for seven consecutive trading sessions after the central bank announced a sharp increase in key policy rate.
The SBP on April 07, 2022 announced 2.5 per cent increase in interest rate to enhance the key policy rate to 12.25 per cent from 9.75 per cent. The rupee was at all-time low PKR 188.18 to the dollar on the day of monetary policy announcement.