Rupee strengthens

The rupee ended slightly higher against the dollar in the interbank market on Wednesday, dealers said.

The local currency closed at 155.40 against the greenback, up from the previous closing of 155.44. In the open market, the rupee extended minor gains to close at 155.40 against the dollar. It had finished at 155.45 on Tuesday.

Dealers said the currency posted gains due to insignificant demand and positive sentiments. The latest measures announced by the central bank regarding increase in the existing limits of the export finance scheme up to Rs100 billion and allowing manufacturing sector for $10,000 advance payment against raw material imports lifted investors’ sentiment, they said.

State Bank of Pakistan Governor Dr Reza Baqir during a news conference on Tuesday had said that the economy was moving in the right direction, amid stable foreign exchange and stock markets.

He said the increase in the SBP’s foreign exchange reserves last week was not because of a single person. It was due to improvement in the market sentiment and falling forward book liabilities. The forex reserves held by the State Bank of Pakistan rose $443 million to $8.357 billion during the week that ended on November 1.