Pakistani rupee bounces back against US dollar after hitting record low

KARACHI: After hitting a record low a day earlier, the Pakistani rupee bounced back against the US dollar in the interbank market, registering a gain of nearly Rs14 during the early hours of intra-day trading on Friday, ARY News reported.

The Pakistan rupee was being traded at 285.75, registering an increase of Rs13.18.

The massive appreciation comes after the rupee finished at a record low of 298.93 against the US dollar in the inter-bank market on Thursday.

Experts believe the dramatic surge in PKR was witnessed after investors received positive cues from the political front, following the Supreme Court’s ruling declaring the arrest of Imran Khan as illegal, and the end of violent protests across the country.

Furthermore, Finance Minister Ishaq Dar’s reassurance that Pakistan would fulfil external obligations timely, with or without the International Monetary Fund (IMF), helped pacify markets.

Dar revealed that there is a plan for foreign payments of $3.7 billion in May and June, and the country would not default. Ishaq Dar expressed hopes that China will also rollover $2.4 billion loan for Pakistan, whereas, the budget will be presented on June 9.

While informally talking to the journalists, Ishaq Dar said that it is completely up to the International Monetary Fund (IMF) to sign a staff-level agreement or not.

He clarified that the government will not make tough decisions on IMF’s demand anymore. “We have already implemented pre-conditions of the IMF but not anymore.”

The finance minister reiterated that Pakistan will not default with or without the International Monetary Fund, however, the government has completed the implementation of all conditions of the IMF.