Dollar slips to Rs170.54 as Re extends recovery for fifth session

KARACHI: Pakistani rupee continued recovering against the US dollar in the inter-bank market for the fifth straight session on Tuesday with the local unit gaining 75 paisas (+0.44 percent) on prospects of resumption of $6 billion Extended Fund Facility by the International Monetary Fund (IMF).
According to the State Bank of Pakistan, the US dollar opened at Rs171.29 and closed at Rs170.54. Within the open market, the rupee was traded at 171/ 172.50 per dollar.
Adviser to the PM on Finance and Revenue, Shaukat Tarin Monday said that Pakistan and the IMF will sign an agreement on the release of a $1 billion tranche of a bailout package this week. “All issues have been settled with the International Monetary Fund and an agreement will be signed this week,” Tarin said while talking to the media persons. There are some legal issues that will be resolved soon leading to a final agreement, the advisor further said.
“You can take an assurance from me right now, we are very close to an agreement,” Shaukat Tarin had told reporters earlier. “There are just one or two things which we are still discussing,” he had added.
The Pakistani rupee made an all-time low of Rs175.27 on Tuesday last and since then after the announcement of the Saudi package for Pakistan, the local currency has recovered Rs4.73 against the greenback during the last five sessions. Overall, the rupee appreciated by Rs1.11 during the last two days. The rupee depreciation during the fiscal year 2021-22 has been Rs13.12. The local unit has shed Rs10.37 against the US dollar in the current year 2021. The local currency has maintained a downtrend after it touched 22-month high of Rs152.48 in May 2021, losing a cumulative Rs18.25 in the past five months to date.
Saudi Arabia announced additional support of $3 billion to Pakistan for building its foreign exchange reserves. The financial support is in addition to a $1.2 billion deferred oil facility to Pakistan to help its balance of payment issues. – TLTP