The Pakistani Rupee (PKR) substantially recovered against the US Dollar (USD) and posted massive gains during intraday trade today amid market sentiments that the International Monetary Fund (IMF) would soon release $1.17 billion for Pakistan under its Extended Fund Facility (EFF).
Also, the local unit gained further ground after Pakistan’s import bill witnessed a massive decline of almost $3 billion in July.
By midday, the local unit had gained Rs.10.38 against the greenback and was trading at Rs.228 in the open market. This is the highest intraday gain in a week and the third biggest in over three years. Despite today’s gains, the dollar is up by Rs.48.26 (intraday) against the PKR.
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According to data from the Pakistan Bureau of Statistics (PBS), imports fell by 38.3 percent over the previous month, as the government prohibited a number of luxury commodities in order to manage the economy’s currency shortfall.
Bulls took control of the currency after the IMF on Tuesday confirmed that Pakistan has fulfilled the last of the prior actions required by the lender for the approval of the combined 7th and 8th review program.
