Pakistan’s rupee surged after touching an all-time low this week as dollar demand for imports eased.
(Bloomberg) — Pakistan’s rupee surged after touching an all-time low this week as dollar demand for imports eased.
The currency advanced 4.7% to 285 per dollar in early trade on Friday, according to data from the foreign-exchange desk at Arif Habib Ltd.
The demand for dollars eased after the market faced extra pressure from external payments, said Tahir Abbas, head of research at Karachi-based Arif Habib. Pakistan’s currency market is facing a dollar shortage since last year, with the nation’s reserves currently enough just enough to cover one month of imports.
The South Asian nation faces delays in securing a loan from the International Monetary Fund amid an economic crisis. The political turmoil following the arrest of opposition leader Imran Khan has worsened the nation’s outlook. Moody’s Investor Service sees a risk that the nation may default after June if can’t secure IMF funding.
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