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Bloomberg
Pakistan’s rupee advanced from a record low as the International Monetary Fund (IMF) team is set to start negotiations over the resumption of its $6.5 billion bailout.
The rupee climbed 1.7% to 265 per dollar, after sliding to an unprecedented 270, according to the foreign—exchange desk at Arif Habib Ltd. The benchmark stock index climbed 1.9%, snapping a two-day loss.
Optimism the nation may be at the brink of securing funds from the IMF is growing after Prime Minister Shehbaz Sharif took bold steps, including loosening its grip on the currency and raising fuel prices. A team from the IMF arrived for a review after months of delay in the next loan tranche.
The rupee slid almost 15% this month after money exchange companies abolished the limit on the dollar-rupee rate in the open market.
to curb the black market, where the greenback was being sold at about 10% above advertised rates. Pakistan is spiraling deeper into crisis amid a shortage of dollars and accelerating inflation, with reserves falling to a nine-year low.
“The Pakistani rupee will probably stabilise around these levels until we get more information from the IMF visit,†said Johnny Chen, fund manager at William Blair Investment in Singapore.