Rupee gains 26 paise against US dollar

KARACHI: The rupee ended stronger on Friday thanks to healthy inflows from export proceeds and remittances, dealers said.

In the interbank market, the rupee closed at 278.13 to the dollar, compared with Thursday’s closing value of 278.39. The local unit appreciated by 0.09 percent during the session. The rupee gained 13 paisas to settle at 280.73 against the dollar in the open market.

The local currency was supported, according to dealers, by healthy supplies from exporter dollar sales and remittances as well as general optimism following the International Monetary Fund's staff-level agreement with Pakistan. If approved by its board, the global lender will release $1.1 billion for the country. “Strong dollar supply and hope that the IMF's tranche, which is expected to be received next month, will contribute to bolstering foreign exchange reserves and maintaining the rupee's stability,” said a currency dealer.

Pakistan’s foreign exchange reserves held by the central bank rose by $105 million to $8.018 billion as of March 15. Optimism about the nation's economy was further boosted after New Finance Minister Muhammad Aurangzeb said that he is eager to tap Chinese investors by selling up to $3 million in Panda bonds for the first time ever this year, Bloomberg reported.