Pakistan's Rupee Strengthens for a Fifth Week Against Dollar

by Farhan Sharif

Nov. 21 (Bloomberg) -- Pakistan's rupee posted a fifth weekly gain, its best winning streak in a year, after the government said it expects to receive the first installment of an International Monetary Fund bailout this weekend. Bonds fell.

The currency closed at a six-week high after the government said it expects a minimum $3.2 billion of a $7.6 billion IMF loan to be transferred to the central bank as soon as the fund's executive board approves the payment. The rupee tumbled as much as 26 percent this year, reaching a record low last month as concern mounted the government would default on its overseas debt obligations.

``The main reason behind the fall in dollar demand is the anticipation of long-awaited default-avoiding funds coming in from the IMF,'' said Imran Khan, head of research at First Capital Equities Ltd. in Karachi. ``The government's clear policy announcements also helped curb speculative activities in the currency market.''

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