Rupee rises for second straight day

KARACHI: The rupee extended gains against the dollar for the second consecutive session in the interbank market on Wednesday.

The rupee closed at 280.46 per dollar, compared with the previous closing value of 280.57.However, the rupee held steady in the open market. It ended at 282.09 against the dollar, unchanged from the previous close.

Dealers said the local unit gained ground due to sluggish dollar demand from importers and encouraging macroeconomic signals.On Tuesday, Fitch upgraded Pakistan’s Long-Term Foreign-Currency Issuer Default Rating by one notch to ‘B-’ from ‘CCC+’ with a stable outlook due to improved fiscal consolidation and structural reform momentum under the International Monetary Fund’s (IMF) loan programme.

According to the Fitch report, tight economic policies are supporting reserve recovery and reducing external funding pressures, though financing needs remain substantial. Lower oil prices and Pakistan’s limited reliance on exports and market-based financing help cushion global trade risks.The country performed well on IMF targets related to reserves and the primary surplus, but fell short on tax revenue growth, it said.