The dollar fell against the rupee by seven paise in the interbank market to stand at Rs278.50 during the intraday trading on Monday, insiders said.

The currency exchange rates have stabilised in the South Asian country following a crackdown on hoarders and illegal exchange companies, according to experts.

They also attribute the International Monetary Fund agreement to the improvement, saying that such a deal has improved market sentiment.

In September, the IMF’s Executive Board approved a new $7 billion, 37-month loan agreement for Pakistan that requires “sound policies and reforms” to strengthen macroeconomic stability. The approval released an immediate $1 billion disbursement to Islamabad.

The crisis-wracked South Asian country has had 22 previous IMF bailout programs since 1958.