Karachi August 16 2022: Pakistan Rupee appreciate for the eleventh consecutive day to trade around 213.5 against dollar in the interbank as Pakistan signed Letter of Intent with IMF amid Saudi Arabia plans to renew its $3 billion deposit in assistance to Pakistan and lower external debt repayments in the month of August.
However, dollar index gains 0.18% in today’s trading to 106.74.
Higher export-related receipts and optimism that country is inching toward securing the International Monetary Fund bailout amid crackdown on foreign exchange dealers further fueling the appreciation of Rupee in the interbank.
The rupee appreciates by 70 paisa in the interbank to trade at 213.28 against dollar. On Monday, Dollar closes at 213.98 in the interbank trading after appreciating 0.71 percent in a day.
Pakistan Rupee appreciates more than 12 percent from its low of 239.94 against dollar hit on 28th July 2022.
The Saudi Finance Ministry plans to renew its $3 billion deposit with State Bank of Pakistan as soon as this week, the sources said, asking not to be identified discussing private deliberations, Bloomberg reported on Saturday.
The kingdom also plans to provide $100 million a month for 10 months in petroleum products that will be granted as additional support, the sources added.
SBP expect debt repayments to moderate during the next three weeks of this month.
In fact, around three-fourth of debt servicing for the month of August was concentrated during the first week.
The worst may be over for emerging Asian currencies as slower-than-expected US inflation eases pressure on the Federal Reserve to aggressively raise interest rates, according to DBS Group Holdings Ltd. and Malayan Banking Bhd.
Pakistan has met the last prior action for the combined 7th and 8th review following the increase in petroleum levy on 31st July 2022, says IMF country representative to Pakistan Esther Perez Ruiz.
The Board meeting is tentatively planned for third week of August as per Governor State Bank of Pakistan.
