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Tuesday April 23, 2024

Rupee gains against dollar

By Our Correspondent
April 03, 2024
A foreign currency counts Pakistani rupee notes at a shop in Karachi, on March 2, 2023. — Online
A foreign currency counts Pakistani rupee notes at a shop in Karachi, on March 2, 2023. — Online

KARACHI: The rupee ended slightly higher on Tuesday due to better availability of dollars from export proceeds and remittances, dealers said.

In the interbank market, the rupee closed at 277.84 to the dollar, compared with Monday’s closing value of 277.94. It increased by 0.04 percent during the session. The rupee also gained in the open market. The currency was trading at 280.04 per dollar, up from 280.20 in the previous session.

Dealers said the rupee kept appreciating progressively amid dollar selling by exporters. Remittances from Pakistani citizens working overseas are also increasing as a result of the holy month of Ramazan.

"With just almost a week until the festival of Eid ul Fitr, an increasing number of Pakistanis living abroad are sending money to their families back home, helping the local currency," said a currency dealer.

The rupee is unlikely to experience a major fluctuation and is expected to trade in the 290–301 range versus the US dollar by the end of December as market participants anticipate that Pakistan will secure a fresh bailout from the International Monetary Fund as soon as June.

A staff level agreement with the International Monetary Fund for a new loan programme is anticipated to be reached by the end of the fiscal year, according to Finance Minister Muhammad Aurangzeb, who also noted that no formal discussions have yet taken place with the Fund.

The finance minister stated that specifics of the deal would be reviewed at the spring meetings and that he would be leading a group to Washington around April 14 to 15.