Pakistani rupee gains significant recovery after hitting record low against US dollar

The Pakistani rupee has gained a significant recovery after hitting a record low against the US dollar, the central back said.

The rupee got the much-awaited support and hit a one-week high beyond Rs285 to a dollar on Thursday after confirmation from the International Monetary Fund (IMF) that Saudi Arabia had given a financial commitment of $2 billion to Islamabad.

The State Bank of Pakistan (SBP) reported that the rupee regained 1.21%, or Rs3.43, and closed at Rs284.42 against the greenback in the inter-bank market. The currency had hit an all-time low for the second consecutive day on Wednesday at Rs287.85/$.

On the penultimate working day of the week, the local currency appreciated by Rs3.43, or about 1.2 per cent, against the US dollar, official figures showed.
According to market analysts, the Pakistani rupee strengthened after the government told the media about significant progress in its ongoing efforts for the resumption of the IMF's programme.

The local currency remained under pressure for almost a year, and one of the major reasons for it is the looming uncertainty around the IMF programme that had been stalled since last year.

Agencies