Rupee continues to gain ground against dollar

Rupee snaps losing streak as IMF approves loan tranche


KARACHI: The Pakistani rupee (PKR) rebounded against the dollar on Tuesday after the International Monetary Fund (IMF) approved a loan for cash-strapped Pakistan.

The rupee has continued to fall in previous sessions, gaining 1.80 rupees against the dollar to settle at 220.12 rupees. On the open market, the dollar fell 6 rupees to trade around 224 rupees.

Earlier, the IMF board approved the seventh and eighth review of Pakistan’s bailout package, allowing about $1.1 billion to be released.

The IMF agreed to extend the program process by a year and increase total funding by $720 million, which will bring total EFF access to about $6.5 billion.

The Expansion Fund Facility (EFF) program has an initial term of 36 months and is worth $6 billion when approved in 2019. The scheme has been stalled since earlier this year as Islamabad struggles to meet targets set by lenders.

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