Pakistani rupee breaks losing streak

Pakistani rupee (PKR) snapped out of its losing streak against the dollar on Friday (27 May), gaining PKR2.50 in interbank trade in the early morning hours after the Pak government decided to lift the fuel price cap to comply with the conditions of the International Monetary Fund (IMF).

According to the Forex Association of Pakistan (FAP), the dollar was trading at PKR199.50 at 10:38am, after depreciating against Thursday's close of PKR202, reports The Dawn. 

The persistent decline in the rupee's value since 10 May has been largely attributed to the country's rising import bill, widening current account deficit and depleting foreign exchange reserves.

Since the PML-N-led coalition government took over on 11 April, when the dollar was valued at PKR182.30, the greenback has risen by PKR19.

FAP Chairman Malik Bostan said that the rupee appreciated because of the government's decision to end fuel subsidies.

"We hope this will pave the way for a loan from the IMF and an agreement will soon be reached which will further ease the pressure on the rupee," he said. 

It will also help boost foreign exchange reserves, he added.