In response to the last-minute financial assistance granted by the International Monetary Fund (IMF), the Pakistani rupee strengthened by Rs15 against the US dollar on Tuesday in the interbank market.
Pakistani Rupee Soars Against Dollar: Around 10 a.m., according to the Forex Association of Pakistan, the rupee was worth Rs271 to a dollar, a hefty Rs15 rise.
According to Tresmark’s Head of Strategy Komal Mansoor, the market may stabilise today in the 272-276 zone, with the central bank playing a key role in setting future currency values.
Mettis Global Director Saad bin Naseer hypothesised that an increase in remittances through banking channels could result from panic among dollar hoarders brought on by the increased foreign exchange reserves.
IMF Agreement Trading Day Marks Economic Stability
Zafar Paracha, a currency broker, claims that the new IMF agreement has helped the economy by restoring investor confidence and that this would lead to an increase in foreign investment. He thinks the government ought to work to keep stability and lower the dollar rate. He emphasised that although Pakistan has excellent financial standing, management might use some work, and he proposed reviewing the country’s policies.
Due to bank holidays and a shortage of rupee cash, some money changers were able to buy dollars on Monday for a range of Rs275 to Rs285.
The currency strengthened on the first trading day after Pakistan signed a $3 billion Standby Agreement (SBA) with the IMF, signalling a sense of economic stability. Due to bank vacations, few exchange companies had rupee cash on hand, and many others were unable to purchase dollars despite heavy demand.
Exchange businesses stated that they had no customers for dollars and were solely sellers. The open market business has been considerably impacted by the State Bank of Pakistan’s decision to permit banks to buy dollars from the banking market rather than exchange companies.