As of 10:57 am on Monday, the rupee was trading at Rs275 against the dollar in the interbank market, according to information from the Exchange Companies Association of Pakistan (Ecap). As compared to Friday’s price of Rs278.46 for one dollar, this represents an increase of Rs3.46 or 1.24 percent.
According to Komal Mansoor, Head of Strategy at Tresmark, the rupee strengthened as a result of market anticipations that an SLA would be signed with the International Monetary Fund (IMF) by the end of this week.
“We have carried out all of the [IMF-required] reforms. The construction of reserves was one of the IMF’s requirements. On the Industrial and Commercial Bank of China Ltd.’s rollover of a $1.3 billion loan, she stated, “We witnessed some reserve building last week.
Three installments will be used to pay for the facility. Ishaq Dar, Pakistan’s finance minister, announced on Saturday that the State Bank of Pakistan has received the first installment, for $500 million.
China has loaned Pakistan $700 million to help increase its foreign exchange reserves. Mansoor continued, “The rupee feels more stable since the IMF [agreement] seems likely.
