Rupee strengthens

The rupee strengthened on Wednesday, as exporters’ dollar conversion surpassed demand from importers, dealers said.

The rupee closed at 156.32 against the greenback, up from 156.45 on Tuesday in the interbank market. “The currency gained 13 paisas against the dollar during the trade, helped by dollar selling by exporters,” a dealer at a mid-tier bank said.

“We saw exporters converted their proceeds, which increased the supply of the greenback in the market,” he added. Some dealers expect the local unit to be relatively stable at the moment, but its future direction is likely to be influenced by the outcome of the Financial Action Task Force (FATF) meeting due on October 13, 2019 in Paris.

Analysts believe Pakistan will remain on the grey list due to support from three friendly countries: China, Malaysia and Turkey.

In the open market, the rupee gained 10 paisas to end at 156.50 against the dollar. It finished at 156.60 in the previous trade. “The rupee is stable in the kerb market due to insignificant demand for foreign exchange,” said Zafar Paracha, secretary general of the Exchange Companies Association of Pakistan.