Rupee ends higher against dollar

KARACHI: The Pakistani rupee strengthened against the US dollar in the interbank market on Monday.The rupee ended at 277.95 per dollar, compared with the previous close of 278. Dealers said the local unit gained little ground due to the improved supply of dollars.

“The rupee looks to maintain its current trend and remain stable in the coming trading sessions as exporter sales and remittances are anticipated to match importers’ demand for dollars,” a dealer said.

Pakistan’s central bank’s foreign exchange reserves climbed by $620 million to $12.04 billion as of November 29 after it received a $500 million loan from the Asian Development Bank (ADB) for a climate programme.

Last week, Saudi Arabia extended the term of $3 billion deposits made with Pakistan for another year to boost the country’s economy. The term of the deposit was maturing on December 5. The deposit agreement was signed with the Saudi Fund for Development (SFD) in 2021 and rolled over in 2022 and 2023.

Analysts predict Pakistan’s economy will benefit significantly from Saudi Arabia’s $3 billion deposit extension. It improves the nation’s foreign reserves, makes it easier to pay off external debt, and stabilises the rupee by lessening pressure on it. Although it offers temporary respite, it also emphasises Pakistan’s continued reliance on external support to maintain economic stability.