The Pakistani rupee registered some improvement, appreciating 0.1% against the US dollar in the inter-bank market on Monday.
At close, the currency settled at 278.11, a gain of Re0.29 against the greenback.
During the previous week, the rupee remained largely stable against the US dollar keeping its position around the 277-279 mark where it has traded for a number of months.
The domestic currency settled at 278.40 against the greenback, according to the State Bank of Pakistan (SBP), only marginally lower than 278.38 where it had closed the week earlier.
In a key development, the International Monetary Fund (IMF) said on Friday that it had reached a staff level agreement (SLA) with Pakistan for a $7-billion, 37-month loan programme aimed at cementing stability and inclusive growth.
The IMF said the new Extended Fund Facility (EFF) was subject to approval by its Executive Board and obtain “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”
Market experts said that the development will be key to ensure currency stability.
“We anticipate the Pakistani Rupee (PKR) to remain stable in short-mid term driven by a positive sentiment arising from the new programme,” said Arif Habib Limited (AHL).
Globally, the US dollar rose on safety bids on Monday in the wake of the attempted assassination of former US President Donald Trump, which in turn left the yen struggling to stay afloat despite Tokyo’s suspected intervention efforts.
Trading was thinned in Asia with Japan out for a holiday, though news of the Trump shooting dominated the cautious market mood and had investors narrowing the odds of a Trump victory come November’s US elections.
American Dollar Exchange Rate