The Pakistani rupee sees a slight increase against the US dollar, rising 0.05% in the initial trading hours of Tuesday's interbank market.
The rupee was up 13 paisas against the US dollar at 10am, trading at Rs278.07. On Monday, the local currency dropped 8 paisas and closed at Rs278.20.
Significantly, Wall Street bank Citi expected an agreement between Pakistan and the International Monetary Fund (IMF) for a new four-year program worth up to $8 billion by the end of July.
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In a note to clients, Citi's Nikola Apostolov stated, "A larger and longer IMF EFF (Extended Fund Facility) program could be finalised by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments."
In the meantime, the government began talks on Monday about future engagement with the Fund as Pakistan looks for a new and more expansive loan program with the IMF. An IMF mission, headed by Nathan Porter, met with the finance minister on Monday at the Finance Ministry to begin the conversation about future engagement with the Fund, according to the Finance Division's official statement.
Globally, the US dollar remained stable on Tuesday, as investors anticipated this week's inflation report, which is expected to influence US interest rate outlooks. Meanwhile, the yen was trading close to a two-week low, raising concerns about intervention.
