Rupee dips slightly against US dollar

April,07(A. E Report)—— Pak Rupee moved back to losing zone while depreciating slightly against US dollar in the inter-bank market on Friday despite a slight recovery in early hours.
According to State Bank of Pakistan (SBP), the local currency closed at 284.65, down 0.23 or 0.08 percent.
A day earl, Rupee registered significant gains against the US dollar, settling at 284.42 in the inter-bank market after a gain of Rs3.43 or 1.21%, on the back of news that the IMF has received assurance from Saudi Arabia of helping out Pakistan. The IMF is seeking such assurances before it revives its bailout programme for the South Asian country.
Minister of State for Finance Aisha Ghaus Pasha on Thursday informed that Saudi Arabia has told the lender it will provide a $2-billion loan to Pakistan.
Pasha said Islamabad was also in talks with the United Arab Emirates (UAE) to secure its assurance for foreign reserve deposits in the central bank.
In another development, Finance Minister Ishaq Dar in a meeting with US Ambassador Donald Blome informed the envoy of progress in talks held with the IMF and reiterated the commitment of the government to complete the programme.
“Comments from Saudi Arabia have led to a positive reaction by both currency and equities market, experts told.
“However, there are concerns amid reports that Finance Minister Ishaq Dar and his team would not visit the US to attend the IMF-World Bank spring meetings. This has irked market sentiment,” they added.
Islamabad has been hosting an IMF mission since early February to negotiate a series of policy measures to secure $1.1 billion funding for the cash-strapped economy.
The funds are part of a bailout package the IMF approved in 2019, which analysts say is critical for Pakistan to avert defaulting on external payment obligations.
The deal will also unlock other bilateral and multilateral financing avenues for Pakistan to shore up its foreign exchange reserves, which have fallen to four weeks worth of import cover, and help it steer out of a balance of payment crisis.

Economic Affairs