Rupee at 4-month high as inflows rise

Pakistani currency on Monday hit a four-month high at Rs279.20 against the US dollar in the inter-bank market as it resumed the uptrend on the back of increase in supply of foreign currency compared to its demand for imports. Market talk suggests that dollar inflows surged on account of rise in remittances sent home by overseas Pakistanis and higher export earnings. Exporters scrambled to sell the greenback on forward counters in the currency market, believing that the rupee may continue to strengthen in the coming days. Besides, the rupee appreciated in the backdrop of reports saying that the government would try to secure a larger International Monetary Fund (IMF) loan programme of $7.5-8 billion when the current $3 billion standby arrangement ended in March-April 2024. Earlier, the government said it would approach the global lender for seeking a loan package of $6 billion. Higher inflows of foreign currency in future will further support the rupee.