KARACHI: The rupee appreciated day-on-day by Rs1.04 or 0.60 per cent against the US dollar in the interbank market on Friday giving a positive signal about the stabilisation of the exchange rate.

The market sources said the dollar was traded as low as Rs174.48. On Thursday, the rupee gained 89-paisa against the US dollar.

The greenback has lost Rs3.76 since its highest price of Rs178.24 on Dec 29, 2021. The announcement of IMF loan revival and immediate disbursement of $1.053bn improved the market sentiments.

A free-float exchange rate is one of the IMF conditions for the revival of the loan programme. However, the financial sector experts believe that the inflow would boost SBP reserves, but it will not provide long-term strength to the exchange rate.

The government has recently raised $1bn through the international sukuk issue to improve its falling foreign exchange reserves. The finance minister on Thursday announced generating $1bn through the Eurobond issue in March.

Published in Dawn, February 5th, 2022