The dollar fell by 0.19 against the rupee in the inter-bank market on Monday, the central bank said. The US currency closed at Rs277.92.

The marginal increase in the value of the rupee comes after the government update that the country would reach an agreement with the International Monetary Fund for the release of more than $1 billion under the stalled loan programme.

Moreover, the Industrial and Commercial Bank of China Ltd approved a rollover of a $1.3 billion loan for Pakistan on Friday.

The facility will be disbursed in three installments. The first one of $500 million has been received by Pakistan’s central bank, Finance Minister Ishaq Dar had said.

Pakistan has already received a $700 million loan from China to help boost its forex reserves.

More external financing will be coming to Pakistan only after Islamabad signs a deal with the International Monetary Fund (IMF), which the minister said should be done by next week.

The lender has been negotiating the deal with Pakistan since early last month to clear its ninth review, which if approved by its board will issue over $1 billion tranche of the $6.5 billion bailout agreed in 2019.