KARACHI: The rupee made a sharp recovery against the dollar at the opening of the interbank foreign exchange market on Monday. The rupee recovered Rs1.63 as the exchange rate is presently at Rs173.61 to the dollar.

The rupee ended at Rs175.24 to the dollar in the interbank foreign exchange market last Friday.

Currency dealers attributed the recovery in the local currency to the tightening of monetary policy last week and the announcement of the IMF for the release of the next tranche earlier this morning.

The State Bank of Pakistan (SBP) on November 19, 2021, decided to increase the key policy rate by 150 basis points to 8.75 per cent in order to stabilise the money market and to create resistance in the local unit against the dollar.

Further, earlier this morning the IMF issued a statement for the release of $1.06 billion tranche under Extended Fund Facility (EFF) to Pakistan. However, the release is subject to the approval of the IMF executive board and completing prior actions by the country.

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