Rupee gains

The rupee extended gains for the second straight session on Wednesday on persistent sluggish demand for the dollars from importers, dealers said.

The rupee closed at 155.13 against the greenback, compared with the previous closing of 155.18 in the interbank market. In the open market, the rupee gained 20 paisas to end at 155.15 against the dollar. It had finished at 155.35 on Tuesday.

Dealers said the currency maintained its upward trend due to smooth supply of the greenback, low import payments and improved market sentiment. “We see the rupee to gain further strength, appreciating to 155 per dollar in the coming week,” a forex dealer said.

State Bank of Pakistan Governor Dr Reza Baqir, in his recent statement, said Moody’s upgradation of Pakistan’s outlook from negative to stable is the recognition of tough decisions taken by the economic policymakers over recent months, including the devaluations of the exchange rate that culminated in the change in the exchange rate regime to a market-based system since May 2019.

He said these steps have made exports competitive, curbed expensive imports and given an incentive to domestic industries to compete with imports, and resulted in a sustained improvement in the current account, which has been the key driver of the increase in the SBP’s reserves net of liabilities.