The greenback depreciated by 0.03% in the interbank market
The Pakistani rupee resuscitated itself Thursday against the US dollar in the interbank market–by recording a gain of 6 paisas.
The greenback thus depreciated 0.03% and closed at Rs174.98, according to data shared by the State Bank of Pakistan.
A day earlier, the value of the US dollar rose by 74 paisas, to close at Rs175.04. It reached an all-time high of Rs175.73 in the interbank on November 12.
Meanwhile, in the open market, the dollar was traded between Rs176.80 and Rs177.80.
Here are the open market rates of major currencies on November 25, 2021:
According to Malik Bostan, the chairperson of the Forex Association of Pakistan, the demand for the US dollar went down over the Thanksgiving holiday in New York.
The value of the US dollar is likely to fluctuate in the next two to three days, he added.
The recovery in the value of the Pakistani rupee was pegged to news of the International Monetary Fund (IMF) loan. The IMF will provide a loan tranche of $1 billion to Pakistan. The agreement, which still needs to be approved by the Fund’s Executive Board, also praises Pakistan for meeting key targets and will likely improve investor trust in the country.
However, Exchange Companies Association Secretary Zafar Paracha said that the value of the US dollar was raised artificially and its value will further drop once the tranche is released by the IMF.