Rupee strengthens

The rupee continued to march upwards against the dollar in the interbank currency market on Thursday, dealers said.

The local currency closed at 155.09 against the greenback, compared with the Wednesday’s closing of 155.13.

In the open market, the rupee also gained slightly to close at 155.10 versus the dollar. It had settled at 155.15 in the previous session.

Dealers said the currency posted gains due to fewer imports and increased supply of the greenback.

The persistent increase in the SBP’s foreign exchange reserves also lifted investors’ sentiment.

Dealers said the rupee is expected to extend gains in the next sessions, amid increased foreign exchange reserves and positive outlook for the balance of payments.

The external sector showed improvement due to exchange rate adjustments and other factors. The current account deficit showed a surplus of $99 million in October versus a deficit of $1.280 billion in the same month last year.

The current account is supported by reduction in imports, a modest growth in exports and steady workers’ remittances. Workers' remittance rose to $2 billion in October from $1.74 billion in the previous month.