Rupee recovers against USD after Saudi Arabia commits funds

KARACHI: After back-to-back losses, the Pakistani rupee on Thursday found some respite against the US dollar, appreciating Rs3.43 in the interbank market, according to the State Bank of Pakistan (SBP) report.

The local unit gained Ra3.43 against the greenback to close at Rs284.42 in the interbank market.

A day earlier, the rupee had closed at Rs287.85 per US dollar. In the open market, the greenback was trading at over Rs293.

Experts say the gain in the value of the rupee can be attributed to the assurance provided by Saudi Arabia to IMF for additional funds.

Pakistan moved a step closer to securing its loan from the International Monetary Fund bailout after Saudi Arabia assured the global lender it will provide a $2 billion loan to help the nation avoid a default.

Read More: PAKISTAN-IMF DEAL TO BE SEALED AFTER UAE FUNDING ASSURANCE: MINISTER

Islamabad has been negotiating with the IMF since January for the release of $1.1 billion from a $6.5 billion bailout package agreed upon in 2019. To unlock the funding, the government has jacked up interest rate by 3pc, removed an artificial cap on the exchange rate, added taxes and raised fuel prices.

It may be noted that the IMF had demanded of the Pakistani government to get a written guarantee from the friendly countries for the deposit.

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