Pakistani rupee strengthens 2.38 percent versus dollar in interbank market

3^min

The Pakistani rupee on Friday strengthened 2.38 percent in interbank closing at 278.46 rupees against the dollar, a day after the central bank raised its policy interest rate by 300 basis points (bps) to 20 percent, trading data showed.

The rupee , which fell more than 6 percent on Thursday, was trading at 275.5 against the dollar during the day, up nearly 3.5 percent, after the opening session.

"The rupee may have appreciated over the governors statement in the analyst meeting where he says the IMF has not asked to match the border rate," says Mustafa Pasha, chief investment officer at Lakson Investments.

Pasha added that expectations of reaching a staff level agreement soon have shot up now that the government has floated the currency, withdrawn farmer/export subsidies, and imposed electricity surcharges.

He says, "On the other hand, it could be that the SBP has done a soft intervention or overseas Pakistanis decided to remit after seeing the rupee touch 286 against the dollar."

The value of the local currency has been depreciating amid delays in a funding deal with the International Monetary Fund (IMF), which is crucial for the South Asian's broken economy faced with a balance-of-payment crisis.

The sides have been negotiating a policy framework since the start of last month to agree on measures to bridge the fiscal deficit ahead of an annual budget around June.

A staff-level agreement is yet to be signed, which finance minister Ishaq Dar said on Thursday should be done by next week.

If negotiations succeed, the IMF will issue over $1 billion to Pakistan, which is critical to unlock other bilateral and multilateral funding.

A market-based currency exchange is one of several conditions the IMF has made to approve the funding.

Moody's downgraded the crisis struck country unsecured debt ratings to ‘’Caa3’ from ‘Caa1’ on Wednesday. On Friday five Pakistani banks: Allied Bank Limited (ABL), Habib Bank Ltd. (HBL), MCB Bank Limited (MCB), National Bank of Pakistan (NBP) and United Bank Ltd. (UBL), were also downgraded to Caa3 from Caa1.

Pakistani rupee strengthens 2.38 percent versus dollar in interbank market

The Pakistani rupee on Friday strengthened 2.38 percent in interbank closing at 278.46 rupees against the dollar, a day after the central bank raised its policy interest rate by 300 basis points (bps) to 20 percent, trading data showed.

Pakistan

Rupee

Strengthen

Versus

Dollar

Interbank

Market

US VP departs Israel as Tel Aviv intensifies threats toward Hamas and Hezbollah—the details

US VP departs Israel as Tel Aviv intensifies threats toward Hamas and Hezbollah—the details

At least 14 dead as migrant boat sinks off Turkey

At least 14 dead as migrant boat sinks off Turkey

Wife of jailed Palestinian leader Marwan Barghouti asks Trump to seek his release

Wife of jailed Palestinian leader Marwan Barghouti asks Trump to seek his release

Lebanese President, Interior Minister discuss preparations for upcoming parliamentary elections

Lebanese President, Interior Minister discuss preparations for upcoming parliamentary elections

Meet Miss Lebanon 2025 contestants: Video

Meet Miss Lebanon 2025 contestants: Video

Series of Israeli airstrikes spark massive fire in southern Lebanon

Series of Israeli airstrikes spark massive fire in southern Lebanon

Lunar eclipse captivates Lebanon: watch the stunning video

Lunar eclipse captivates Lebanon: watch the stunning video

Lebanon eyes ceasefire hope as US general meets top officials amid Israeli strikes

Lebanon eyes ceasefire hope as US general meets top officials amid Israeli strikes

Israeli army hits alleged Hezbollah weapons depot in southern Lebanon

Israeli army hits alleged Hezbollah weapons depot in southern Lebanon

Elderly woman and young man killed in Israeli airstrike on Arabsalim

Elderly woman and young man killed in Israeli airstrike on Arabsalim

Israeli army begins strikes on sites in southern Lebanon, Channel 12 reports

Israeli army begins strikes on sites in southern Lebanon, Channel 12 reports

Israeli army completes largest drill on Lebanese border since war began, claims Avichay Adraee

Israeli army completes largest drill on Lebanese border since war began, claims Avichay Adraee

US VP departs Israel as Tel Aviv intensifies threats toward Hamas and Hezbollah—the details

US VP departs Israel as Tel Aviv intensifies threats toward Hamas and Hezbollah—the details

Israeli army claims it killed 'Hezbollah logistics chief' in South Lebanon strike

Israeli army claims it killed 'Hezbollah logistics chief' in South Lebanon strike

Israeli strike targets vehicle in Toul, South Lebanon

Israeli strike targets vehicle in Toul, South Lebanon