Rupee strengthens for fourth day in interbank market
The rupee ended at 279.41 to the dollar, slightly higher than its previous close of 279.48
KARACHI: The rupee extended gains for the fourth straight session in the interbank market on Friday helped by healthy inflows and sluggish dollar demand from importers.
The rupee ended at 279.41 to the dollar, slightly higher than its previous close of 279.48.
In the open market, the rupee lost ground against the dollar. The rupee was trading at 281.21 for selling, compared with 280.08 on Thursday, according to figures released by the Exchange Companies Association of Pakistan.
The weak dollar demand from importers and robust dollar supply allowed the rupee to steadily strengthen versus the US dollar, dealers said.
Despite a slight decline in Pakistan’s foreign exchange reserves, investors maintained their optimism that these reserves would rise on the back of improved current account position and higher dollar inflows.
The current account deficit narrowed by 77 percent to $0.8 billion in the first half of the current fiscal year. The $700 million payout from the International Monetary Fund under the $3 billion stand-by arrangement and other official inflows supported the forex reserves, despite profit and dividends repatriation-related outflows.
The SBP remains confident that forex reserves by June will stand higher than the IMF projection of $9.1 billion.
