Rupee rises marginally against dollar

KARACHI: The rupee edged higher against the dollar in the interbank market on Wednesday.

The rupee ended at 278.04 to the dollar, compared with Tuesday’s close of 278.07.

The rupee gained seven paisas in the open market trade. It was trading at 280.60 per dollar for selling, up from 280.67 in the previous session.

Dealers said the rupee continued to post slight gains supported by healthy inflows in the form of export proceeds and remittances.

Besides, there are many factors which kept the rupee stable against the US currency.

The International Monetary Fund reached a staff level agreement with Pakistan on the second and final review of a $3 billion standby arrangement, which, if approved by its board, the global lender will release $1.1 billion for the country’s cash-strapped economy in April. Pakistan seeks a fresh larger and longer bailout from the IMF. The government will negotiate an extended fund facility with the IMF in Washington next month. Islamabad plans to ask for a loan of at least $8 billion.

In February, the country’s current account showed a $128 million surplus as opposed to a $303 million deficit in January. The current account surplus exceeded market estimates by a significant amount. The country’s foreign exchange reserves held by the central bank rose by $105 million to $8.018 billion as of March 15.