Rupee rises to 277.66/dollar in interbank market

KARACHI: The Pakistani rupee maintained its upward trend against the dollar in the interbank market on Friday.The rupee closed at 277.66 against the dollar, up from 277.74 on Thursday.The rupee also gained ground in the open market, closing at 278.65 to the dollar, up from 278.74 the day before.

According to dealers, the local unit extended advances for the third straight day, helped by improved dollar availability from exporter sales and remittances. There was little demand from importers. The rupee also gained momentum versus the dollar as a result of the continuous increase in foreign exchange reserves.

Pakistan’s central bank foreign exchange reserves increased by $84 million to $11.26 billion as of November 8. The country’s total reserves increased by $34 million to $15.966 billion. However, the reserves of commercial banks dropped by $50 million to $4.707 million.

Dealers expect the rupee to trade within the existing range versus the greenback in the coming sessions.While the IMF’s recent visit might not have led to new taxes, certain adjustments are still needed to make up for past tax shortfalls and prevent future deficits.