In the early hours of Friday’s trading session, the Pakistani rupee strengthened versus the US dollar in the interbank market.
As of intraday trading, the local currency was trading at 276.75 against the US dollar, having increased by Rs 8.34.
Although it lost Rs18.98 versus the dollar, which closed at Rs285.09, the local currency experienced a historic decline on Thursday.
The local currency gained ground against the dollar after Finance Minister Ishaq Dar predicted that the International Monetary Fund (IMF) and Pakistan’s impassed accord will likely be resolved next week. The disbursement of a Chinese loan to Pakistan yesterday is another encouraging development.
Despite paying all external due payments on time, the State Bank of Pakistan’s (SBP) foreign exchange reserves have been rising and are now approximately US $ 1 billion greater than they were four weeks ago, he continued.
China disbursed $700 million to the central bank as payback for GoP commercial loans, and after taking into account repayments of external debt, the SBP reserves climbed by $556 million.
