Rupee strengthens

The rupee strengthened against the dollar in both the currency markets on Thursday, dealers said. It closed at 157.22 against the greenback, compared with Wednesday’s closing of 157.28 in the interbank market.

Similarly, the currency traded stronger in the open market. The rupee ended at 157.50 versus the greenback, compared with the previous closing of 157.70. Dealers said the currency traded in a range-bound manner during the day because of routine dollar demand from importers. Moreover, the rise in the foreign exchange reserves helped prop the currency up.

Investors’ optimism also grew following reports that the government is considering policy options to revive economic activities, including relaxation in discount rates and targeted interventions in agriculture and the SME sectors.

A meeting of the Monetary and Fiscal Policies Coordination Board (MFPCB) discussed the options to enhance the economic activities in potential areas of the economy with targeted policy interventions.

Meanwhile, Pakistan’s foreign exchange reserves increased to $15.629 billion during the week ended August 23 from $15.604 billion in previous week. Foreign exchange reserves held by the State Bank of Pakistan rose by $32 million to $8.271 billion.