Rupee sees massive gain, up 4.5% against US dollar

The Pakistani rupee appreciated by 4.51% against the US dollar during the early hours of trading in the interbank market on Tuesday, as expected.

At roughly 9:50 a.m., the rupee was trading at 273.64, up Rs12.35.

Last week, the rupee gained against the US dollar for the second time in a row, closing at 285.99.

In a related event, Pakistan is said to have submitted the International Monetary Fund (IMF) a Letter of Intent (LoI) including nine main assurances following a staff-level agreement on a nine-month $3 billion stand-by arrangement (SBA).

Separately, Moody’s Investors Service stated on Monday that Pakistan’s new IMF agreement will promote macroeconomic stability.

Moody’s also stated that, in the long run, Pakistan must pursue reforms, including revenue-raising measures, while the economy will remain depressed in the short term.

The IMF and Pakistan struck a new $3 billion nine-month SBA on Friday after the country failed to complete yet another $6.5 billion IMF Extended Fund Facility (EFF) programme, which expired on June 30, 2023.

However, the new SBA is being viewed as a big boon for the devastated economy, which has been plagued by interminable delays in the renewal of the IMF plan.

Oil prices, a major indicator of currency parity, remained stable early Tuesday as markets balanced supply concerns following August cuts by leading exporters Saudi Arabia and Russia against varied analyst views on economic data that could indicate poor oil demand.

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