Rupee rises on exporter dollar sales, IMF deal hopes

KARACHI: The rupee extended its gains for a fourth consecutive session on Monday, buoyed by dollar sales from exporters and expectations of an imminent agreement with the International Monetary Fund (IMF) on a $3 billion bailout.

In the interbank market, the rupee appreciated slightly to close at 278.63 against the dollar, up from Friday's close of 278.74. The open market saw the rupee maintain its position, ending the day at 281.20 to the dollar, unchanged from the previous session.

Traders attributed the local currency's modest gains to a combination of forward dollar sales by exporters and a generally optimistic outlook for Pakistan's economy. Investor sentiment has been cautious yet hopeful, with eyes on the ongoing discussions with the IMF.

Chase Securities highlighted in a note that while Pakistan is reportedly seeking a new IMF package next month, the IMF has clarified its position, indicating no additional funding for projects like the China-Pakistan Economic Corridor (CPEC).

“Reports of Pakistan's intention to seek a new IMF package next month, the IMF has asserted its stance, signaling no further funding for the CPEC as per news reports,” the brokerage said. “Additionally, anticipation looms as Pakistan is expected to finalise a staff-level agreement with the IMF this week, indicating potential shifts in economic policies.