Friday August 19, 2022

Rupee rebounds

By Our Correspondent
June 29, 2022

KARACHI: The rupee recovered from previous session’s losses to end 0.52 percent stronger against the dollar in the interbank market on positive sentiments about IMF revival, dealers said.

The local unit ended at 206.87 to the dollar on Tuesday, compared with Monday’s close of 207.94.

In the open market, the domestic currency ended flat at 206.50 per dollar.

Dealers said the local unit gained ground on positive sentiment after Finance Minister Miftah Ismail confirmed in the morning that the country had received a memorandum of economic and financial policies from the International Monetary Fund (IMF) for combined seventh and eighth reviews on the Extended Fund Facility.

“Sentiment improved as the market expected the IMF financial support package would resume soon and the country would get $1.9 billion from the IMF as a loan tranche,” the currency dealer said.

“The potential IMF inflows would help stabilise the foreign exchange reserves and strengthen the rupee further in coming days,” he added.

The real effective exchange rate (REER) clocked in at 93.57 as of May, compared with 95.87 in the previous month.