Rupee edges lower against dollar

KARACHI: The Pakistani rupee was little changed against the US dollar in the interbank market on Thursday.

The rupee closed at 279.26 per dollar, compared with its previous close at 279.25. In the open market, the rupee weakened, trading at 281.10 to the dollar, a decline from 281.06 on Wednesday. The local unit, according to traders, remained stable during the session due to matching demand and supply of dollars. However, they will now watch the International Monetary Fund missions’ meeting with Pakistani authorities for clues regarding the future trajectory of the currency.

This month and the first week of March, two policy-level missions from the IMF will come to Islamabad to discuss climate resilience funding and review the ongoing $7 billion Extended Fund Facility.

“In the coming week, additional IMF missions are expected -- one to review the progress of Pakistan’s programme and another to assess climate resilience-related funding,” said Chase Securities in a note.

“Notably, the prime minister has proposed an electricity tariff reduction scheme to the IMF, with the IMF chief requesting a formal submission for review. This development is positive for the economy, particularly for energy-intensive sectors, and could contribute to a further decline in overall inflation,” it added.