Rupee up

The rupee ended slightly higher against the dollar in the interbank currency market on Friday, as import payments waned, dealers said.

The local currency closed at 154.96 against the dollar, compared with the Thursday’s closing of 154.98.

In the open market, the rupee stayed flat at 154.70/dollar for the third consecutive session. “The rupee was ranged-bound and traded at 154.95 to 155. There was fewer import payments today,” a currency dealer said.

The local currency traded at 155.05/dollar in the TOM (one-day forward) market, he added. Dealers said the expected official inflows are likely to strengthen the local unit.

The International Monetary Fund’s board and Pakistani authorities would meet on December 19 to discuss the first review, which will pave the way for the disbursement of the second tranche worth $450 million under its three-year loan programme.

Pakistan’s bright economic outlook could push the rupee higher in the near- to medium-term. The central bank’s foreign exchange reserves increased $121 million to $9.233 billion during the week ended December 6 due to multilateral and other official inflows.