Rupee gains on IMF loan

KARACHI: The rupee closed marginally stronger on Tuesday after the International Monetary Fund approved $1.1 billion in funding for Pakistan.

In the interbank market, the rupee ended at 278.31 to the dollar, up from its Monday’s close of 278.39. The rupee managed to post slight gains in the open market trade. It was trading at 279.63 per dollar, compared with 279.68 in the previous session.

Dealers said that the rupee appreciated somewhat versus the dollar due to the positive sentiment sparked by the announcement that the IMF's executive board had approved the immediate release of $1.1 billion for Pakistan.

The IMF’s board completed the second and final review of Pakistan’s economic reform programme supported by the $3 billion stand-by arrangement on Monday.On Tuesday, the State Bank of Pakistan confirmed that it has received the final tranche of $1.1 billion under the stand-by arrangement.“The State Bank of Pakistan’s tight monetary policy stance remains appropriate until inflation returns to more moderate levels,” the IMF said in a statement.