Rupee gains ground in open market

KARACHI: The rupee gained ground in the open market on Wednesday due to an improvement in the supply of dollars, dealers said. The rupee was selling at 311 per dollar, compared with 312 on Monday, according to currency rates published by the Exchange Companies Association of Pakistan (ECAP). The local unit rose by 1 rupee during the session.

In the interbank market, however, the rupee fell 0.04 percent to close at 285.47. As the supply of dollars increased, the currency rebounded after reaching record lows in the previous sessions, according to ECAP secretary general Zafar Paracha.

“In the upcoming days, the central bank’s circular that permitted banks to buy dollars from the interbank market to settle debit/credit card transactions will assist reduce pressure on the currency on the open market,” Paracha added. Analysts said the statement of the IMF mission chief for Pakistan, saying that Pakistan’s authorities are focusing on the restoration of proper foreign-exchange market functioning, the passage of the fiscal year 2024 budget consistent with programme goals, and adequate financing boosted investor sentiment.

In a statement, the chief of the IMF mission for Pakistan said that the IMF is still in touch with Pakistan's government in order to clear the way for a board meeting before a financing programme expires at the end of June.