PKR claws back by 14 rupees in interbank market on IMF lifeline

July 04, 2023 (MLN): In line with the market expectations, the Pakistani rupee (PKR) has witnessed a significant recovery of 14 rupees right after the beginning of the session in the interbank market today compared to the previous close of PKR 285.99 per USD.

The dollar was being quoted at 271.99/276.99 (9:54 PST) with the trades being reported at 271.99 while in the open market, the dollar is being traded at 275/285 per USD.

It is to mention that the interbank ready market is closed today. The rates are settlement for tom market. Thin trade in being observed in Tom market.

During yesterday's session, PKR appreciated by 5 rupees against the US dollar in the open market as the currency was quoted at PKR 275 (bid) and PKR 285 (ask) per USD.

The positivity in the market is on the back of the long-standing Staff Level Agreement (SLA) worth $3 billion finally being signed on Friday between the International Monetary Fund (IMF) and Pakistan.

Moreover, following the Staff Level Agreement (SLA), the IMF board is finally scheduled to meet the Pakistan side on July 12, 2023.

“For Pakistan, the near-term default risk has substantially declined,” Eng Tat Low, an emerging-market sovereign analyst at Columbia Threadneedle Investments in Singapore told Bloomberg,

“However, we remain cautious on a medium-term outlook,” he added.

Against the backdrop of an abnormal rally, the Pakistan Stock Exchange (PSX) was halted within the first seven minutes of the trading session on Monday as the KSE30 index rose 5% for five consecutive minutes.

Consequently, the benchmark index KSE-100 closed yesterday's trading session at 43,899 showing an increase of 2,446.32 points.

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