Rupee stages slight recovery

KARACHI: The rupee on Friday slightly recovered against the dollar in both the currency markets on positive sentiments developed by reports of seeking debt relief from bilateral creditors and expectations of inflows from international institutions, dealers said.

In the interbank market, the local unit ended at 239.65 to the dollar, compared with Thursday’s close of 239.71. It rose by 0.03 percent.

The domestic currency gained 50 paisas to settle at 244.40 versus the greenback in the open market. It had finished the previous session at 244.90.

Dealers said the rupee started gaining lost ground on some positive developments.

“The reports of seeking debt relief from bilateral creditors in the wake of devastating flooding, relaxation in the IMF [International Monetary Fund] conditions, and the expectations of inflows from the international lending institutions helped improve sentiments on the rupee,” said a currency dealer.

He was hopeful that the rupee would maintain its present levels, and would stage more recovery after arrival of foreign inflows.

Finance Minister Miftah Ismail claimed that Kristalina Georgieva, managing director of the IMF, had "expressed agreement" with Pakistan's request to ease conditions imposed on the country under the Extended Fund Facility programme.

Ismail said the IMF representative had also agreed to raise the amount Pakistan would get in the next tranche. However, he went on to say that there were still "many conversations" to be held with the Washington-based lender.