Rupee ends higher against dollar

KARACHI: The rupee closed stronger on Thursday owing to a better supply of dollars and optimism that Pakistan will secure approval from the International Monetary Fund’s executive board for a new $7 billion loan programme this month.

In the interbank market, the rupee finished at 278.67 per US dollar, slightly higher than its previous close of 278.76.Dealers reported that after exporters sold dollars in the market, supply improved and the local unit recovered from its losses from the previous session. Besides, positive sentiments also supported the rupee.

The rupee remained flat at 280.25 against the dollar in the open market.Earlier this week, Prime Minister Shehbaz Sharif said that Pakistan is working to meet all the conditions set by the IMF for a new loan. Finance Minister Muhammad Aurangzeb also said that they are in the advanced stages of getting assurances for external financing.

Rollovers remain a critical hurdle for the government as it seeks approval from the IMF’s executive board, said Chase Securities in a note.The reports suggest that the IMF has set a deadline for next week for securing rollovers from friendly countries, a prerequisite for the board’s decision, it added.

“The IMF has also urged the government to either address the revenue shortfall for September 2024 or present a comprehensive plan to cover the revenue gap from previous months,” it said.