5190122, 207 Pa Rupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business - DAWN.COM DAWN ‘TODAY'S PAPER | MAY 30,2022 Rupee gains another Rs1.2 in interbank as Pakistan closes in on IMF deal Talgeen Zubairi | Published May 30, 2022 - | Updated about an hour ago aad” a person holding US dollar bills. — AFP/File Afile pl Continuing its recovery, the rupee on Monday appreciated by Rs1.2 against the US dollar in the interbank trade, a development which is largely being attributed to the change in market sentiments over the government's expected deal with the hitpsiwww. dawn cominewsiprin 1692284 wisien, 207 a Rupee gains another Rst.2 interbank as Pakistan closes non MF deal - Busines - DAWN.COM International Monetary Fund (IMF) after it complied with its condition to raise fuel prices. According to the Forex Association of Pakistan (FAP), at around 11am, the greenback depreciated to Rs198.40 — down Rsi.20 against Friday's close of Rs199.60. This is the second continuous session during which the dollar is depreciating against the rupee. On Friday, the greenback had lost Rs2.35. Since the PMI-N-led coalition government took over on April 11, when the dollar was valued at Rs182.30, the greenback rose around Rs20 to breach Rs202 by May 26. But after weeks of persistent declines — which had been largely attributed to the country's rising import bill, widening current account deficit and depleting foreign exchange reserves — on Friday, the rupee finally broke its losing streak after the government decided to lift the fuel price cap to comply with the conditions of the IMF. Komal Mansoor, head of research at Tresmark, told Dawn.com that the recovery of the rupee reflected the change in sentiments on the back of an expected IMF deal, which appeared to be very close and would boost the country’s foreign exchange reserves. “Rupee lost value this month over concerns of depleted reserves, hence, any positive news regarding the reserves will naturally support the rupee," she said, pointing out the rupee "is materially undervalued" on an REER [real effective exchange rate] basis — the weighted average of a country’s currency in relation to an index or basket of other major currencies. Mansoor added that exporters were now looking forward and the market was eyeing further gains with Rs196 as the interim target. General secretary of the Exchange Companies Association of Pakistan, Zafar Paracha, was confident that the rupee's recovery would continue this week. "In the upcoming days, there are chances of the greenback depreciating further which will help the economy.” Meanwhile, the CEO of Alpha Beta Core, Khurram Shehzad, said that while the government was well aware of the rupee's external devaluation, the internal devaluation of the currency was synonymous with austerity measures. "For instance, individual members of a currency union like Euro are unable to do anything about the common currency if they find themselves in a difficult economic situation. They have no option but to hitpsiwww. dawn cominewsiprin 1692284 anasin02, 207 Pe Rupee goin another Rst.2in interbank as Pakistan closes in on IMF deal - Business - DAWN.COM cut down salaries of government employees, privatise and sacrifice growth to achieve stability,” he explained. This option was available to Pakistan as well if it did not want the currency to further devalue, Shehzad added. Last week, the government raised the prices of all petroleum products by Rs3o per litre — the highest-ever inerease in the prices of all petroleum produets in one go — in a bid to rein in the fuel subsidies that had been a sticking point in talks with the IMF and resumption of a $6 billion facility, which has been stalled since early April. An official earlier told Dawn that this was the first step towards convincing the IMF to release the next tranche of $1bn at the earliest. Announcing the price hike, Finance Minister Miftah Ismail expressed the hope that now the exchange rate would improve, markets would stabilise, economy would balance out and investors would take the decision positively. Dawn's weekly rupee-dollar parity report, published on Monday, showed that after the government's decision was announced, the rupee started appreciating, hitpsiwww. dawn cominewsiprin 1692284 anaRupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business ~ DAWN.COM i interbank Ml Open market 5190/22, 207 PM Chart by PA Last Friday Monday Tuesday Wednesday Thursday Friday Latest Stories htpstiwo. dawn cominewsiprint 1692284 ana207 PM Rupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business - DAWN.COM mi al Death toll mounts to 79 from Brazil downpours as Rupee gains another Rs1.2 in interbank as Pakistan search continues closes in on IMF deal Nepal says missing plane with 22 on board crashed SBP predicts headline inflation likely to inerease throughout next fiseal year hitpsiwow. dawn, com207 PM Rupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business ~ DAWN.COM IMGES Review: Kamit ic a film that deserves an Ocear snhmiscian htpsswwa. dawn cominewsiprin 16922‘Top Gun: Maverick debuts to stratospheric $124m at North American box office Most Popular 04 Situationer: How Imran's march came to an abrupt end htpsswww. dawn cominewsiprint 169225190122, 207 Pa Rupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business ~ DAWN.COM PRG POse AT BA Leaked tape hints at Imran’s‘patch-up' efforts with Zardari "No deal’: Ended Azadi Mareh to avert bloodshed, says Imran. 04 "Great change’: Israeli president says received delegation of Pakistani expats hitpstiwww. dawn cominewsiprint 1692284 ana5190122, 207 PM Rupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business - DAWN.COM 05 IHC grants lawyer Imaan Mazari-Hazir pre-arrest bail in army ‘defamation’ case hitpsiwww. dawn cominewslprint 1692284 ona207 PM Rupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business - DAWN.COM Religious affairs minister delivers self-aggrandising speech on foreign trip 095190122, 207 Pa Rupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business - DAWN.COM — First woman to head Lahore police operations Must Read ot ~~ After taking ‘tough decisions’, the govt now looks at China for rescue A Chinese package is said to be in the works, Negotiations with TTP — why we need parliament to steer this process wa ‘The Analytical Angle: Why Pakistan must replace electr with a voucher and rebate system? hitpssiwww.dawn cominewsiprint 1692284 sna5130/22, 207 PM Rupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business ~ DAWN.COM Javed Younas | Ayesha Ali The case for fresh elections Umair Javed ‘The anatomy of a Pakistani horror show Javaria Faroogui Opinion hitpsiwww. dawn cominewsiprin 1692284 vane5190122, 207 Pa Rupee gains another Rs1.2in interbank as Pakistan closes in on IMF deal - Business - DAWN.COM Votes and mandates Maleeha Lodhi All political actors need to think as much about the country’s economic future as their own partisan interests. 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