The Pakistani rupee gained Rs15 against the US dollar in the interbank market on Tuesday, in the first trading session after the country secured last-minute funding from the International Monetary Fund (IMF). According to the Forex Association of Pakistan, the local currency had appreciated by Rs15 and was being traded at Rs271 around 10am. Alpha Beta Core CEO Khurram Schehzad said the approval of the stand-by agreement with the IMF was the main reason for the decline in the dollar in the domestic market.

Tresmark’s Head of Strategy Komal Mansoor predicted that the market may stabilise around the 272-276 range for today. “The central bank will be instrumental in guiding the currency levels there after,” she said. Mettis Global Director Saad bin Naseer said that those who were hoarding dollars will panic once foreign exchange reserves start building. “And if this happens, then you will see an increase in remittances with banking channels because the hundi-hawala won’t take a risk,” he said.

Currency dealer Zafar Paracha said that the IMF agreement had had a positive effect on the economy as investor confidence had been restored. He hoped that foreign investment would also increase in the days to come. He said that the government needed to focus on bringing down the dollar rate low and let it remain there. He said that Pakistan’s financial credentials were “good” and the only area in which the country lacked was management, adding that the government should also review its policies.

Credit : Independent News Pakistan-INP