KARACHI: The rupee recovered on Monday after six consecutive sessions of losses, driven by positive sentiment stemming from a ceasefire agreement between Pakistan and India and the approval of a roughly $1 billion loan disbursement from the International Monetary Fund (IMF) for Pakistan.
The rupee ended at 281.56 per dollar in the interbank market, higher than Friday’s close of 281.7.However, the rupee declined in the open market, trading at 283.5 against the dollar, compared with 283.46 in the previous session.
“The immediate ceasefire agreement between Pakistan and India, brokered by the US, has significantly eased regional tensions and is expected to restore investor confidence,” said Chase Securities in a note.
“The recent IMF approval of a $2.4 billion disbursement under the EFF [Extended Fund Facility] and RSF [Resilience and Sustainability Facility] programmes further strengthens the macroeconomic backdrop,” it said.
“The IMF has acknowledged Pakistan’s progress in economic stabilisation, including a primary surplus and a significant reduction in inflation, which has allowed the State Bank of Pakistan to cut policy rates,” it added.