Rupee recovers losses

KARACHI: The rupee recovered from the previous session’s losses to end slightly higher against the dollar on Friday.The rupee closed at 277.73 to the dollar in the interbank market, compared with Thursday’s close of 277.94.

In the open market, the rupee also recovered its losses, rising from 278.88 to 278.74 to the dollar.Dealers said the soft dollar demand from importers, steady rise in foreign exchange reserves, and optimism surrounding Pakistan’s economy helped the rupee gain ground against the dollar during the session.

Pakistan’s foreign exchange reserves held by the central bank rose by $18 million to $11.175 billion in the week ending November 1. However, the country’s forex reserves dropped by $117 million to $15.932 billion. wThe reserves of commercial banks also decreased by $135 million to $4.757 billion.

“An IMF team is scheduled to visit next week for the first program review, with discussions likely centred on the current tax shortfall,” said Chase Securities in a note.“It remains to be seen whether additional taxation measures will be needed or if the recovering economy, through increased activity, can boost tax revenues organically,” it added.