The Pakistani rupee continued its resurgence against the US dollar, appreciating by Rs3.03 to trade at the Rs218.88 level in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee appreciated by 1.38% against the greenback. The rupee even hit the 217 level before losing some of its intra-day gains by the end of the session.
This is the eighth successive session in which the value of the rupee has improved after touching a historic low of Rs239.94 against the dollar in the inter-bank market last month.
On Wednesday, the rupee had settled at 221.91 on the back of market sentiment.
The value of the rupee went into a nosedive last month following concerns over the IMF deal. Last month, Pakistani authorities and the IMF reached a staff level agreement for the combined seventh and eighth review. The international lender’s board is scheduled to meet in late August where a final decision will be taken on the release of tranche.
The disbursement of funds from the IMF is crucial for the cash-strapped economy and also vital for unlocking further funding from other international creditors and friendly countries.
Meanwhile, oil prices, a key determinant of currency parity, also slipped on Thursday, as concerns over supply disruptions eased and markets looked for evidence of improving fuel demand.