Rupee extends gains on healthy supplies

KARACHI: The rupee continued to rise for the second straight day on Thursday as exporters’ dollar sales and remittances exceeded importers’ demand. The rupee ended the day at 277.74 per dollar, an increase from Wednesday’s closing price of 277.85.

“The demand from importers was low, and exporters’ conversions and remittance inflows got better supporting the local unit,” a currency dealer said. The rupee rose in the open market as well, closing at 278.74 to the dollar, up from 278.8 the day before. According to dealers, the rupee seems to remain stable in the coming sessions, reflecting optimism regarding Pakistan’s economy amid the International Monetary Fund’s team’s ongoing discussions with Pakistani authorities to review progress on the $7 billion loan programme. The IMF team is concluding its meetings in Pakistan, with the last day of the visit scheduled for Friday.According to media reports, no mini budget is expected, nor is there any downward revision in tax targets.

The government aims to meet these targets through administrative and enforcement measures, with a possible adjustment in the petroleum development levy (PDL) to address any revenue shortfall,” said Chase Securities in a note. “In other developments, Saudi Arabia has reportedly linked its deferred oil facility to the Reko Diq agreement, showing a strong interest in acquiring a stake in the project. Representatives from the Saudi Development Fund are expected to visit Pakistan next week to further discuss potential investments,” it added.