The rupee increased by roughly Rs1 versus the dollar during the early morning session on Wednesday in the interbank market.
In comparison to yesterday’s close of Rs238.38, the rupee had increased by 88 paise by 9:50am to reach Rs237.5, according the Forex Association of Pakistan (FAP).
The International Monetary Fund (IMF) is anticipated to issue its tranche shortly, according to FAP Chairperson Malik Bostan, which is why the currency has been rising since Friday.
In the past three sessions, the currency has increased by Rs1.56 in relation to the US dollar.
Because of increased border security, Bostan added, “the differential of Rs10 between both the prices in the market place and inter market due to smuggling of usd into Afghanistan has indeed been equalised.” The rupee has strengthened as a result of the cessation of dollar transfers into Afghanistan.
The FAP chairperson also made note of how the country’s trade imbalance had decreased thanks to the reduced import bill for July, which would relieve pressure on the rupee.
He added the clarification on that front and anticipated inflows were also boosting the local currency. He was making reference to the IMF’s declaration yesterday that Pakistan had completed all prior activities for the eighth and seventh reviews.
