Rupee rebounds after eight sessions

After suffering significant losses for eight sessions in a row, the rupee on Wednesday resisted further decline and recovered Rs1.48 against the US dollar in the interbank market. Currency dealers said the local currency bounced back on unconfirmed media reports about a $2.1 billion rollover and $600 million loan from China. “After the $3bn Standby Arrangement with the IMF, many inflows were expected, and some of them have been materialised. It changed the market sentiment from extremely worried to hopeful,” said Atif Ahmed, a currency dealer in the interbank market. The dollar rate fell to Rs287.04 from Rs288.52 a day earlier. Currency dealers said the opening of letters of credit has been made easier after an agreement with the IMF, but obtaining dollars from banks remains challenging. The SBP has allowed banks to open LCs upon arranging dollars.