Foreign currency inflow in Pakistan hopes aid rupee's uptrend

KARACHI, Dec 23 (Express Tribune): Pakistani currency maintained its uptrend for the ninth consecutive working day on Friday and touched a fresh seven-week high at slightly above Rs282.50 against the greenback in the inter-bank market on expectation of imminent foreign currency inflows.
According to State Bank of Pakistan's (SBP) data, the rupee appreciated 0.09 per cent, or Rs0.26, and closed at Rs282.53 against the greenback. The currency has cumulatively risen 1.10 per cent, or Rs3.11, in the past four weeks.
Exchange Companies Association of Pakistan (ECAP) reported that the rupee dropped 0.08 per cent, or Rs0.25, in the open market to close at Rs284/$.
The difference between the rupee-dollar exchange rate in the two markets remained at 0.52 per cent, or Rs1.47, well below the maximum limit of 1.25 per cent (around Rs4 at current levels) recommended by the International Monetary Fund (IMF).
The rupee has maintained its uptrend in inter-bank dealings on reports of an agreement with the Asian Development Bank (ADB) for a financing of $1.2 billion and approval of a loan of $350 million by the World Bank.
The currency market expects fresh inflows of $1.5-2 billion in the second half (January-June) of the current fiscal year from multilateral and bilateral creditors after the IMF executive board gives final nod for the release of next loan tranche of $700 million.
Read Rupee edges up on steady foreign currency inflows
Pakistan has already reached a staff-level agreement with the IMF at the completion of first review of the $3 billion loan programme ending in March 2024.