Pakistan's rupee continued to gain for the third consecutive session against the US dollar, appreciating 0.65% to close below the 174 level at the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the PKR closed at 173.76 against the USD after a day-on-day appreciation of Rs1.13 or 0.65%. The improvement comes after the rupee gained 0.23% or Rs0.40 against the dollar on Tuesday.

Last week on Friday, the PKR had depreciated to its lowest historic level of 175.73 against the USD in the inter-bank market.

The rupee has seen a volatile ride against the US dollar in the past few weeks, amid lack of clarity over the International Monetary Fund (IMF) Extended Fund Facility (EFF) announcement.

This latest round of appreciation, however, comes as Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin repeated that approval of the pending sixth review of the EFF is contingent on the fulfilment of about five prior actions set by the IMF.

Talking to media persons, Tarin said that three major prior actions are power tariff, withdrawal of exemptions, and agreed autonomy to the State Bank of Pakistan (SBP), while he did not reveal the remaining two, and stated that they are of less importance.

“We have already fulfilled the power tariff increase for this review and the remaining would be due after February 2022,” said Tarin.

To a question on SBP deputy governor’s statement that the recent depreciation would fuel inflation, Tarin expressed confidence that the rupee would strengthen as soon as the Fund programme is revived after completion of the sixth review.

Inter-bank market rates for dollar on Wednesday

BID Rs 173.76

OFFER Rs 173.86

Open-market movement

In the open market, the PKR gained 1.20 rupees for both buying and selling against USD, closing at 174.80 and 175.80, respectively.

Against Euro, the PKR gained 2.50 rupees for buying and 2.55 rupees for selling, closing at 197 and 198.90, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 49 and 49.45, respectively.

Against Saudi Riyal, the PKR gained 20 paisas for buying and 30 paisas for selling, closing at 45.80 and 46.15, respectively.

Open-market rates for dollar on Wednesday

BID Rs 174.80

OFFER Rs 175.80

This article was first published on Nov 17 2021 in Business Recorder.