During the early hours of trading on Tuesday, the Pakistani rupee showed a slight improvement against the US dollar, appreciating by almost 0.34% in the inter-bank market.
At approximately 10:30 am, the currency was valued at 283.75, which represented a gain of Re0.96.
This development followed a three-session winning streak that the rupee had enjoyed until Monday, when it lost Re.31 or 0.11% against the US dollar, settling at 284.71 in the inter-bank market.
The resumption of the International Monetary Fund (IMF) Extended Fund Facility (EFF) program, which has been on hold since last year, is eagerly anticipated by the market.
Prime Minister Shehbaz Sharif announced on Monday that Saudi Arabia has given Pakistan another $2 billion, while the UAE has promised to provide $1 billion.
The IMF has expressed its desire to obtain necessary financing assurances as soon as possible to enable the successful completion of the 9th review. Pakistan has already secured $3 billion in fresh inflows from Saudi Arabia and the UAE.
Globally, the US dollar weakened on Tuesday after rallying overnight due to strong US economic data, which reinforced expectations of another interest rate hike by the Federal Reserve in May. Meanwhile, China’s economic recovery continued to gain momentum in the first quarter.
The dollar index, which measures the currency against six major rivals, declined by 0.108% to 101.99, following a 0.5% increase overnight. The index has declined by 0.5% this month.
China’s GDP grew by 4.5% year-on-year in the first quarter, surpassing analyst expectations of a 4% expansion as the end of COVID-19 restrictions propelled the world’s second-largest economy out of recession.
Oil prices, a significant indicator of currency parity, rose slightly early on Tuesday after declining by 2% in the previous session, thanks to improved economic data from China, the world’s biggest crude importer, which boosted demand forecasts.
