The Pakistani rupee unexpectedly held its ground for second day running against the US dollar as it appreciated by nearly half a rupee on Tuesday, reported 24NewsHD TV channel.

According to the forex dealers, the value of the US dollar was depreciated by 46 paisas bringing its exchange rate down to Rs238.38 from Rs238.84 at the close of the interbank trading on Tuesday. 

During the last two days, the greenback has depreciated by about one rupee – down from Rs239.37 to Rs238.38.

https://twitter.com/StateBank_Pak/status/1554410679314120705

On Monday, the US dollar also depreciated by 53 paisas when it ended the day at Rs238.84 down from Rs239.37/

https://twitter.com/StateBank_Pak/status/1554053376039600129

Finance Minister Miftah Ismail during his press conference earlier sounded hopeful believing that pressure on the rupee would be dissipated within two weeks and things would become easy. He said rupee value was improving after a reduction in our import bill which was a welcoming sign.

While conceding that dollar had gone out of control post the July 17 by-polls in Punjab, Ismail said he still believed the value of rupee was far greater than where it was currently standing.

“Fundamentals are in my favour, but speculation and sentiments also play a role,” he said.

The sentiments in market have also improved with the hope that the International Monetary Fund (IMF) is likely to start the process for releasing the seventh and eighth tranches of a $6 billion loan programme for Pakistan later this week, as has been reported in a section of press.

Pakistan and the IMF signed the $6bn bailout accord — Extended Fund Facility (EFF) — in 2019. But the release of a $1.7 billion (seventh and eighth) tranche has been on hold since earlier this year, when the IMF expressed concern about Pakistan’s compliance with the deal.

Last week, Army Chief General Qamar Javed Bajwa telephoned US Deputy Secr­etary of State Wendy Sherman to seek Washington’s support for the package.

During the week ending on July 29, the rupee lost 4.8 per cent more of its value against the US dollar. This brings the total loss the rupee has suffered since the end of Imran Khan’s government on April 7 to 27.2pc.

Meanwhile, foreign exchange reserves held by the State Bank of Pakistan (SBP) that stood at $11.425 billion at the end of March gradually shrank to $8.575bn as of 22nd July.

Reporter Ashraf Khan