March17(EA Report)–Pakistani Rupee(PKR) registered gains against the US dollar, appreciating nearly 0.47% during the early hours of trading on Friday hovering at 281-282 level in inter-bank market amid positive news from the finance minister regarding inflows from China and as the dollar slipped on the international front.
At around 10:50am, the rupee was being quoted at 281.10, an increase of Rs1.32 against the US dollar in the inter-bank market.
A day earlier, the rupee saw some respite against the US dollar, settling at 282.42 in the inter-bank market on Thursday, a gain of Re0.43 or 0.15%.
In a key development, Finance Minister Ishaq Dar on Thursday said that documentation for second disbursement of $500 million dollars from Industrial and Commercial Bank of China (ICBC) had been completed.
The country’s total liquid foreign exchange reserves rose by $93 million during the last week. According to State Bank of Pakistan’s (SBP) weekly foreign exchange report issued on Thursday, SBP’s reserves increased by $18 million to $4.319 billion up from $4.301 billion a week earlier.
In another significant development, Dar told the Senate on Thursday that an assurance from “friendly countries” to fund a balance of payment gap was the last hurdle in securing an International Monetary Fund (IMF) deal, which will offer a critical lifeline to avert an economic meltdown.
Internationally, the dollar slipped on Friday after authorities and banks moved to ease stress on the financial system, taking the heat off most major currencies that tumbled this week in the wake of bank turmoil.
Action to rescue First Republic Bank in the US on Thursday boosted risk appetite globally on Friday as fears of a global banking crisis eased, making way for surges in the Australian and New Zealand dollars.
Oil prices, a key indicator of currency parity, rebounded by about 1% on Friday after a meeting between Saudi Arabia and Russia calmed markets amid strong China demand expectations, after a banking crisis sparked a sell-off in global financial and oil markets this week.
Pakistan Rupee Exchange Rate