Rupee holds steady against dollar

KARACHI: The rupee closed steady on Thursday as selling of the US currency by exporters outweighed importer dollar demand, dealers said.

In the interbank market, the rupee ended at 278.30 per dollar, compared with Tuesday’s close of 278.31.However, the rupee edged lower in the open market trade. The local unit was trading at 279.65 against the dollar, down from 279.63 in the previous session.

“As the currency market opened following a one-day holiday, there was some demand from importers. However, the inflows in the form of exporter conversions offset the demand,” a currency dealer said.

On Wednesday, the markets were closed in observance of Labour Day.Dealers expect the rupee will remain steady in the coming days due to encouraging developments in the economy. This week Pakistan received $1.1 billion from the International Monetary Fund as the final tranche of a $3 billion loan programme. The IMF’s disbursement has increased the central bank’s foreign exchange reserves to $9 billion.

An IMF mission is expected to visit Pakistan in mid-May 2024 to finalise the key components of the next bailout package under the $6–$8 billion Extended Fund Facility programme."There’s been a notable exchange of delegations between Pakistan and Saudi Arabia, with another high-powered delegation scheduled for May 5, prompting the Prime Minister to establish a dedicated committee for this purpose," said Chase Securities in a note."In the financial sphere, Barrick Gold is gearing up to raise $2 billion for the initial phase of a $5 billion investment venture in the RekoDiq project," it added.