Rupee extends gains for second consecutive session

KARACHI: The rupee rose on Thursday, extending its rally for the second consecutive session on optimism that Pakistan will secure two separate loans from the International Monetary Fund (IMF) under the ongoing $7 billion bailout and the Resilience and Sustainability Facility (RSF) in May.

The rupee closed at 280.22 against the dollar in the interbank market, up from 280.26 in the previous session. However, the local currency lost ground in the open market. It was trading at 281.97 per dollar, compared with 281.94 on Wednesday. Dealers said that the rupee sustained its upward trajectory as remittances from overseas Pakistani workers to their family and relatives increased ahead of Eidul Fitr. This improved dollar supplies in the market. In addition, the rupee was supported by reports that the IMF’s executive board will likely consider approval of $2.3 billion loans for Pakistan. Islamabad expects to secure the loan amount in the first week of May before the upcoming budget for the fiscal year 2025-26.

On Wednesday, the IMF and Pakistan reached a staff-level agreement (SLA) on the first review under the ongoing 37-month Extended Fund Facility and a new 28-month climate finance arrangement under the Resilience and Sustainable Facility.