Pakistani rupee gains ground against US dollar in interbank

KARACHI: The Pakistani rupee continued its upward momentum against the US dollar, appreciating 0.23% in the interbank market on Wednesday.

According to the State Bank of Pakistan (SBP), the local unit currency closed at 261.90 against the US dollar, appreciating an increase of Rs0.61.

The greenback had closed at Rs262.51 a day earlier.

Interbank closing #ExchangeRate for todayhttps://t.co/9u7hjEWRxR pic.twitter.com/uyFgaDNDy3

— SBP (@StateBank_Pak) February 22, 2023

The currency (Pakistani rupee) has depreciated by 22.4% during the ongoing fiscal year against the greenback.

The US dollar has gained over Rs30 in the interbank market since the Exchange Companies Association of Pakistan (Ecap) removed an unofficial cap on the exchange rate.

The rise is attributed to the resumption of $7 billion Extended Fund Facility (EFF) stalled for months.

Pakistan was eyeing to reach an agreement with the International Monetary Fund (IMF) that would not only lead to a disbursement of $1.2bn but also unlock inflows from friendly countries.

Sources have revealed that the staff-level agreement between the fund and the government is expected next week.