Rupee gains 24 paisas against the dollar

KARACHI, April 29: Pakistani rupee gained 24 paisas against the US dollar and appreciated to 185.63 on Friday.

The State Bank of Pakistan said in a statement that the rupee opened at 185.87 against the US dollar in the interbank market and closed at 185.63 after gaining 0.13 percent. Within the open market, the rupee was traded at 185.50/187 per dollar against 185.40/186.90 a dollar a day earlier.

Overall, the rupee has gained Rs1.12 against the dollar during the last five days after shedding Rs5.20 last week. The rupee has depreciated by Rs28.20 against the US dollar during the ongoing fiscal year 2021-22 and Rs9.18 during the current year 2022.

According to experts, the rupee witnessed some respite on the back of limited trading activity. However, the gloomy macros will continue to put pressure on the local unit. They said though there is stress on the economy, yet some stability is visible. Despite better exports, the current account deficit has surged to alarming levels and in order to address this challenge, there is a need to look at the agriculture sector and curtail needless imports, they added.

Currency dealers believe that the IMF statement, saying the Fund mission will visit Pakistan in May to resume discussions over policies for completing the seventh review has helped sentiment, as did the news of extending the stalled programme by up to one year and increasing the loan size to $8 billion from $6 billion. Traders and markets are looking at the IMF as progress with the Fund instils investor confidence in the economy, stabilises Pakistan's foreign exchange reserves, and unlocks funding from other international financial institutions. - TLTP