Rupee extends gains

The rupee maintained its upward march against the dollar in the interbank market on Friday, dealers said.

The rupee rose to 155.47 to the dollar, compared with 155.54 on Thursday. Similarly, it gained value in the open market due to slowdown in the demand for foreign currency. The rupee gained 15 paisas to end at 155.55 against the dollar.

Dealers said the currency continued to appreciate, amid increased foreign exchange reserves. “A lower dollar demand from importers and corporates, higher forex reserves and positive sentiment helped strengthen the rupee,” a dealer said.

The forex reserves held by the State Bank of Pakistan rose $443 million to $8.357 billion in the week ended November 1. However, the forex reserves of commercial banks fell to $7.160 billion from $7.175 billion.

Pakistan and the International Monetary Fund’s staff on Friday reached a staff-level agreement on policies and reforms needed to complete the first review under the extended fund facility.

“The agreement is subject to approval by the IMF management and the executive board of directors. Completion of the review will enable disbursement of SDR 328 million (or around $450 million) and will help unlock significant funding from bilateral and multilateral partners,” the IMF said in a statement.