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The Pakistani rupee registered a gain against the US dollar, appreciating 0.37% on Thursday after the International Monetary Fund (IMF) Executive Board approved Pakistans new Stand-By Arrangement and UAE also deposited $1 billion.

At close, the currency settled at 276.46, an increase of Rs1.02, as per the State Bank of Pakistan (SBP).

On Wednesday, the Pakistani rupee strengthened further, inching up 0.39% to settle at 277.48 in the inter-bank market.

In a key development, the IMFs Executive Board on Wednesday approved a nine-month Stand-By Arrangement (SBA) for Pakistan for an amount of $3 billion. The Boards approval allows for immediate disbursement of SDR894 million (or about US$1.2 billion).

The Fund stated that Pakistans economic reform programme aims to support immediate efforts to stabilise the economy and guard against shocks while creating the space for social and development spending to help the people of Pakistan.

Separately, Pakistan also received deposits of $1 billion from the United Arab Emirates (UAE), Finance Minister Ishaq Dar announced on Wednesday.

In a televised message, the finance minister said the friendly country had made a commitment in the recent past regarding giving additional $1 billion deposits to Pakistan.

Internationally, US dollar was nudged lower still in Asia on Thursday, as traders took surprisingly slow US inflation as a signal US interest rate rises will be all but finished by months end.

The dollar had its worst session in five months overnight, falling more than 1% against the euro to its lowest in more than a year and notching even larger losses elsewhere.

The US dollar index fell marginally to 100.47, its lowest since April 2022.

Oil prices, a key indicator of currency parity, hovered above $80 a barrel on Thursday, fuelled by US inflation data that presaged the interest rate hike cycle in the worlds biggest economy is set to finally cool.

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Rupee sees appreciation after IMF board's nod, settles at 276.46 ... - Business Recorder