Pakistani rupee made significant gain against United States dollar in inter-bank market on Wednesday with currency fall below level 230 intraday trading. Huge recognition comes when Pakistan met all preconditions of International Monetary Fund (IMF) and also informed decline in import that revived market feeling.
Around 13:00, the rupee was quoted at around 229.50, i.e. of Rs 8.88 or 3.87% against US dollar during the day trading.
Tuesday Pakistani Rupee posted minor recovery for third in a row session with the calculation at the level of 238.38.
A day ago, the IMF said that Pakistan met all preconditions for combined 7th and 8th review under the Extended Funding (EFF) program.
“With the increase in oil development collection (PDL), Pakistan completed last preliminary action for combined seventh and eighth review’, the IMF said, adding that board meeting pre-scheduled for at the end of August, once the guarantees of adequate funding have been confirmed.
Once approved by the Council, Pakistan will receive about $1.177 billion.
“By the end of In August, Pakistan is expected to receive a $1.2 billion tranche from the EFF program as all preliminary actions met”, — stated in the message Trust Securities and Brokerage Limited. in a note on Wednesday.
“Therefore, it is expected that market likely to consolidate.
“Relative Consolidation also expected in forex markets after a long drop in import and expected correction in demand going forward, subject to respawn of IMF program and relative political clarity”, added.
Tahir Abbas, head of Narrated by Arif Habib Limited (AHL) research. business recorder what pressure of import payments have decreased, leading to drop in demand for in dollar.
“This is a deliverydemand phenomenon as demand for dollars reduced among drop in payments on imports, while exporters also release their proceeds, leading to improvement in flow,” Abbas said.
He said the valuation momentum could continue in coming days, and government import restraint measures of bill led in positive. “The rupee may rise to 205-210 in this month,” he said. added.
It’s intraday update