Rupee stable

The rupee ended almost flat against the dollar in the interbank market on Friday, amid routine dollar demand from importers, dealers said.

The local currency closed at 155.06 against the dollar, compared with the previous closing of 155.09.

In the open market, the rupee traded firmer at 155.10 versus the dollar. Dealers said the currency was stable because of lower import payments, smooth supply of the US currency and positive sentiment about the country’s economic outlook. The bright prospects for Pakistan’s economy are also supporting the domestic currency, they added.

Moody’s Investors Service earlier this week upgraded Pakistan’s credit rating outlook to ‘stable’ from ‘negative’, amid the country’s economic reforms supported by the International Monetary Fund programme.

This development could boost foreign investor confidence in Pakistan’s economy. The foreign exchange reserves held by the State Bank of Pakistan rose $431 million to $9.112 billion in the week ended November 29. The increase in the reserves was due to reduction in the foreign exchange swaps and forward liabilities of the central bank.