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Rupee extends gains

Our Correspondent
Tuesday, May 31, 2022

KARACHI: The rupee managed to post more gains against the dollar in both the currency markets on Monday.

The local unit appreciated by 1.60 rupees versus the greenback in the open market. It was sold at 199.40, compared with 201 in the previous session. In the interbank market, the rupee ended at 199.06 to the dollar, 0.35 percent stronger than Friday’s close of 199.76.

The rupee, which had been under immense pressure since the coalition government took office in April, bounced back on May 27 after the government hiked fuel prices to meet the International Monetary Fund loan conditions.

“With the recent measure taken by the government to reverse petroleum subsidy partially, the IMF seems to be a done deal. Further, this would prove beneficial for Pakistan as the long-impending approval from the IMF for seventh review (worth $900 million) would unlock more inflows from other multilateral donors as well (WB and ADB),” said Arif Habib Limited in a report.