The Pakistani rupee managed to stabilise itself against the US dollar on Wednesday, gaining 80 paisas in the interbank market amid talks of the deal with International Monetary Fund being secured.
The rupee appreciated Rs3.80 to Rs208 against the US dollar from Tuesday’s close of Rs211.80 on Wednesday noon.
As markets closed on Wednesday, the US dollar was being traded at Rs211, having appreciated 80 paisas.
The rise comes after weeks of a continuous fall in the value of the rupee, attributed by experts to the rising import expenditure and dwindling foreign exchange reserves.
Since the coming of the new government, the dollar has gained Rs30 in value.
Exchange Companies Association of Pakistan General Secretary Zafar Paracha, in his comments to media, attributed the rise to reports of the IMF deal being secured. He added that when the deal would be finalised, loans from China and other financial institutions would be possible.
Mettis Global Director Saad Bin Naseer told a local newspaper that despite the IMF deal, the rupee was likely to be under pressure until a final confirmation.
The IMF deal has been put to a halt since April after the previous government had reneged on its commitments after announcement of fuel and energy subsidies.