Rupee extends gains on second consecutive session

KARACHI: The rupee continued to rise against the dollar for the second straight session in the interbank market on Friday after the International Monetary Fund said Pakistan has made significant progress towards reaching a staff-level agreement for an extended fund facility (EFF).

The rupee ended at 278.21 to the US dollar, up from 278.30 on Thursday. It appreciated by 9 paisas or 0.03 percent during the session.In the open market, the rupee finished at 279.55 per dollar, unchanged from the previous close.

“The International Monetary Fund's statement that Pakistan has made significant progress towards achieving staff-level agreement improved investor sentiment,” said a currency dealer. “The positive sentiments in the market are further supported by reports that Pakistan may sell its share of Reko Dik to Saudi Arabia and that the United Arab Emirates has set aside $10 billion for investments in Pakistan's promising economic sector.”

The IMF started talks with Pakistan on a new loan programme after Islamabad last month concluded a short-term $3 billion loan programme that helped prevent a sovereign debt default.After arriving in Pakistan on May 13, an IMF team led by mission chief Nathan Porter wrapped up talks with the government on Thursday.