ISLAMABAD: The Pakistani rupee gained 1.17 percent against the US dollar on Thursday and continued on the path to recovery, central bank data showed.

The annual performance of the rupee has been worse than nearly any other currency, bar Sri Lanka’s rupee and Ukraine’s hryvnia. Until last week, the rupee steadily depreciated amid a rising current account deficit, depleting foreign exchange reserves and economic uncertainty about the revival of a $6 billion International Monetary Fund loan program.

However, the rupee started recovering this week after the International Monetary Fund said Pakistan had cleared all prior actions needed to revive a much-needed bailout scheme.

“The rupee closed at 226.15 to the dollar, up from 228.80 a day earlier,” the central bank said.

On Wednesday, the rupee recorded its highest-ever single-day increase against the US dollar, appreciating by Rs 9.58 against the greenback as pressure from import payments decreased.

The rupee has depreciated by 22.85 percent since January, mainly due to higher imports coupled with uncertainties related to the IMF program.

Pakistan’s finance minister last month blamed the rupee’s slide on political turmoil, saying he expected market jitters over the currency’s sharp decline to subside soon.

The South Asian country recently passed through another bout of political instability, with the government of Prime Minister Shehbaz Sharif taking over from ousted premier Imran Khan in April.

“The rupee downturn is not due to economic fundamentals,” Finance Minister Miftah Ismail told media. “The panic is primarily due to political turmoil, which will subside in a few days.”