Rupee ends higher against dollar

KARACHI: The rupee recovered losses from the previous three sessions and ended slightly stronger versus the dollar on Thursday.

The rupee finished at 278.6 against the dollar, up from 278.72 in the previous session.In the open market, the rupee also rose, closing at 280.18 against the dollar, compared with 280.24 the day before.

According to dealers, the increased supply of dollars helped the local currency gain ground. The rupee was also bolstered by the optimistic outlook for Pakistan’s economy and the anticipation of further interest rate cuts as inflation decreased.

The Asian Development Bank (ADB) revised the country’s growth forecast for FY25 to 3.0 per cent, an increase from the earlier estimate of 2.8 per cent.The ADB in a report indicates that improved macroeconomic stability, resulting from the approval of the new International Monetary Fund (IMF) programme under the Extended Fund Facility, will aid in economic recovery.

The prime minister stressed the need for a sustainable economic trajectory during his visit to the Pakistan Stock Exchange (PSX) on Wednesday. In his address, he identified export growth, privatisation and tax reforms as the three main pillars supporting economic progress. He also added that he wishes to see interest rates at 6.0 per cent, emphasising that a measured and long-term approach is necessary to reach this objective.