Stable rupee finds support from loan talks

The Pakistani rupee on Tuesday remained largely stable, ticking up Rs0.02 to close at Rs278.18 against the US dollar in the inter-bank market amid commencement of talks with the International Monetary Fund (IMF) for a potential new loan programme of $8 billion. According to the State Bank of Pakistan’s (SBP) data, the local currency had closed at Rs278.20 against the greenback on Monday. The rupee has continued to consolidate around current levels, as reports suggest the country will be able to secure a $7-8 billion loan package for four years, coupled with foreign investment inflows from Saudi Arabia. Multilateral inflows and prospects of billions of dollars in investment from the kingdom are expected to boost Pakistan’s foreign exchange reserves and help the rupee sustain recent gains.