![A currency dealer can be seen counting Rs 5000 notes. — AFP/File](https://www.geo.tv/assets/uploads/updates/2022-11-01/449851_8528945_updates.jpg)
- The local unit closed at Rs 220.65 against the dollar.
- Rupee rises on expectations of fresh loan tranche from IMF.
- Analysts believe that the rupee will appreciate further.
KARACHI: October’s best-performing currency continued to rally against the US dollar on Tuesday on anticipation of a fresh loan tranche from the International Monetary Fund (IMF).
According to the State Bank of Pakistan (SBP), the local unit gained 0.24 rupees, or 0.11 percent, against the greenback in the interbank market, closing at 220.65. Closer to Monday of 220.89.
The rupee rebounded after a fall in the Real Effective Exchange Rate (REER) index in September and expectations of a fresh loan tranche from the Washington-based lender.
The REER index fell to 90.9 in September, compared to 94.4 in the previous month, the State Bank of Pakistan reported on Sunday. The REER index shows that the rupee may strengthen further in the coming days.
In addition, expectations that Pakistan will meet its foreign debt obligations on schedule led to a rise in the prices of Pakistani sovereign bonds, which helped boost sentiment towards the local unit.
Analysts estimate that the rupee will rise further as soon as the income of the World Bank starts coming in. during this, Prime Minister Shahbaz Sharif China is in Beijing to discuss the rollover of the debt, which totals $26.7 billion and includes public and publicly guaranteed debt.
From Asia’s worst performing currency to the best performing currency
The Pakistani rupee was the strongest performer in Asia in October, gaining 3.3 percent against the dollar.
The Pakistani currency was followed by the Singapore dollar which gained 1.38%, the Philippine peso (1.15%) and the South Korean won (0.46%).
A successful month of Rs. In October, the rupee appreciated 3.3 percent, Topline Securities said, citing Bloomberg data. It added that the rupee was one of the best performing currencies in Asia.
After touching historic lows in value in both July and August, the rupee started to appreciate suddenly in the last week of September. After the start of Ishaq Dar’s fourth term as the Finance Minister of Pakistan, he began to appreciate.
However, there was pressure due to political unrest arising from the initiation of the local unit. PTI’s Long March Towards Islamabad
The rupee managed to gain ground thanks to Dar’s recent warning to speculators about currency manipulation and falling REER.