Rupee rises to new five-month peak

Pakistani currency on Wednesday hit a new five-month high at Rs278.41 against the US dollar in the inter-bank market, maintaining its winning streak for the sixth successive working day in the backdrop of a staff-level agreement with the International Monetary Fund (IMF) that would clear the way for the release of last tranche of $1.1 billion. According to State Bank of Pakistan’s (SBP) data, the rupee gained 0.07%, or Rs0.22, against the greenback on a day-on-day basis. With the fresh appreciation, the currency has cumulatively surged 10.30%, or Rs28.69, in the past five and a half months compared to the all-time low of Rs307.10/$ recorded in the first week of September 2023. Exchange Companies Association of Pakistan (ECAP) reported that the rupee rose Rs0.03 in the open market and closed at Rs281.12/$. The fresh gains came after Pakistan reached a staff-level agreement with the IMF at the completion of the last review under a $3 billion standby arrangement ending in March-April 2024.