Rupee gains for second day

KARACHI: The rupee extended gains against the dollar for the second consecutive session in the interbank market on Friday. The rupee closed at 280.47 to the dollar, compared with the previous close of 280.56.

Dealers reported a little appreciation of the local currency as dollar inflows from exporters and remittances exceeded the demand from importers. Moreover, the rupee strengthened, tracking gains in the Asian currencies, as the dollar slumped due to concerns about trade tariffs unsettling the markets. The trade war intensified after China retaliated to US President Donald Trump’s reciprocal tariffs by raising its levies on US goods from 84 per cent to 125 per cent. The US tariff rate on Chinese imports now effectively totals 145 per cent.

A slight uptick in the foreign exchange reserves also supported the local unit. Data from the State Bank of Pakistan (SBP) showed on Thursday that the central bank’s foreign exchange reserves slightly increased by $23 million to $10.7 billion during the week ended April 4. The total liquid foreign reserves held by the country also rose by $173 million to $15.753 billion. The reserves of commercial banks increased by $150 million to $5.053 billion.