Rupee firm

The rupee ended almost flat against the dollar on Friday due to slowdown in the dollar demand from importers, dealers said.

In the interbank market, the rupee closed at 155.65 against the greenback, compared with the previous closing of 155.67. However, the rupee posted slight losses in the open market. It lost five paisas to end at 155.75 to the dollar. The rupee finished at 155.70 in the previous session.

Dealers said a soft dollar demand, increase in foreign exchange reserves and positive sentiment on the economy helped strengthen the rupee.

The foreign exchange reserves held by the State Bank of Pakistan rose to $7.914 billion as of October 25 from $7.892 billion in the previous week.

The government has asked the visiting staff mission of the International Monetary Fund to issue sovereign guarantees to help raise over $4 billion from domestic and international capital markets.

The country has planned to launch around $3 billion bonds, Eurobond and Islamic Sukuk in the international capital markets during the current fiscal year. This will help meet the targets under the IMF’s extended fund facility for foreign inflows.

The government has also planned to fetch Rs200 billion from domestic Islamic banks for the power sector to reduce circular debt.