Rupee recovers against dollar, closes at 204.56

The Pakistani rupee recovered on Monday, closing at 204.56 against the US dollar in the interbank market.

According to data released by the State Bank of Pakistan (SBP), the local currency gained 0.14% against the greenback. Last week, the local currency closed at 204.85. Traders said that the Pakistani rupee is expected to strengthen further this week as uncertainty over the revival of an International Monetary Fund (IMF) programme is vanishing and the country is inching closer to reach a staff-level agreement with the global lender.

Market players are also eyeing an increase in inflows from remittances ahead of the Eidul Azha festival, the traders added. “We expect the rupee to gain slightly against the dollar next week amid improved sentiment as clarity is coming on the IMF programme,” a commercial bank trader said. “An expected increase in dollar inflows in the shape of workers’ remittances may also support the domestic currency”. Traders said pre-Eid inflows were particularly high as most Pakistanis working abroad send more money to families to buy sacrificial animals. Eid-ul-Adha will be celebrated in Pakistan on July 10 (Sunday).

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