The rupee strengthened by Rs2.6 or 1.5pc against the greenback on Friday after the International Monetary Fund (IMF) approved an amount of $1.4 billion in coronavirus loan to Pakistan.
The dollar traded as low as 164.0/164.5. The rupee opened weaker against the US dollar in the interbank market earlier and its highest trade was 166.95 during the session.
However, rupee bounced back after it was confirmed that the IMF has approved an amount of $1.4 billion in coronavirus loan to Pakistan. The decision was taken at a meeting of the IMF’s executive board on Thursday that considered an extra loan of $1.4 billion for Pakistan to boost the country’s foreign exchange reserves and extend budgetary support in the wake of the economic slowdown due to the coronavirus pandemic.
The government had requested the global lender last month for a low-cost, fast-disbursing loan under the fund’s Rapid Financing Instrument (RFI) to deal with the adverse economic impact of COVID-19.