Rupee keeps up modest upward trend against dollar

ISLAMABAD (INP): The Pakistani rupee still keeps up its upward trend at the start of this week against US dollar as it gains 87 paisa in its value in the interbank trading. According to forex dealers, during the morning trading activity in the money market on Monday, the US dollar depreciated by 87 paisa and was trading for Rs238.50 by 11am.
On Friday, the last trading day of the previous week, the US currency slumped and closed at Rs239.37. The dollar which had been pulverizing the Pakistani rupee for the last few weeks gave some breathing space to Pakistani rupee which on Friday gained 57 paisa in the interbank trading. Finance Minister Miftah Ismail during his press conference yesterday, sounded hopeful believing that pressure on the rupee would be dissipated within two weeks and things would become easy. He said rupee value was improving after a reduction in our import bill which was a welcoming sign.
While conceding that dollar had gone out of control post the July 17 by-polls in Punjab, Ismail said he still believed the value of rupee was far greater than where it was currently standing. “Fundamentals are in my favour, but speculation and sentiments also play a role,” he said. The sentiments in market have also improved with the hope that the International Monetary Fund (IMF) is likely to start the process for releasing the seventh and eighth tranches of a $6 billion loan programme for Pakistan later this week, as has been reported in a section of press.
Pakistan and the IMF signed the $6bn bailout accord – Extended Fund Facility (EFF) – in 2019. But the release of a $1.7 billion (seventh and eighth) tranche has been on hold since earlier this year, when the IMF expressed concern about Pakistan’s compliance with the deal. Last week, Army Chief General Qamar Javed Bajwa telephoned US Deputy Secr-etary of State Wendy Sherman to seek Washington’s support for the package.
During the week ending on July 29, the rupee lost 4.8 per cent more of its value against the US dollar. This brings the total loss the rupee has suffered since the end of Imran Khan’s government on April 7 to 27.2pc. Meanwhile, foreign exchange reserves held by the State Bank of Pakistan (SBP) that stood at $11.425 billion at the end of March gradually shrank to $8.575bn as of 22nd July.