The rupee continued its recovery against the greenback on Wednesday as it gained Rs1.13, or 0.65%, in the inter-bank market and closed at Rs173.76.
As per data from the State Bank of Pakistan (SBP), the rupee closed at Rs174.89 against the US dollar on Tuesday.
Earlier on November 12, the rupee plunged to a record low at Rs175.73 against the US dollar due to a deadlock in talks between Pakistan and the International Monetary Fund (IMF) regarding the revival of the $6 billion loan program.
Head of Research at Ismail Iqbal Securities Fahad Rauf shared that upbeat statement of adviser to Prime Minister on Finance Shaukat Tarin pertaining to the resumption of IMF program during the next few days drove the rupee’s recovery.
He said, “Moreover, with the end of a joint parliamentary session on Wednesday, the public got much-needed political clarity,” Rauf added, “The turbulence has ended and political normalization is expected.”
He highlighted that the rescheduling of a monetary policy meeting to an earlier date by the State Bank of Pakistan (SBP) hinted at compliance with the IMF’s conditions and “the market now expects the resumption of Extended Fund Facility very soon”.
Meanwhile, the gold prices plunged by Rs2,850 to Rs122,000 per tola. Cumulatively, the gold price has declined by Rs7,100 since hitting a record high of Rs129,100 on November 11, 2021.
