Rupee strengthens

The rupee strengthened against the dollar on Wednesday, dealers said.In the interbank market, the rupee closed at 154.77 against the greenback from the previous closing of 154.85.

In the open market, the buying and selling rates of the local currency against the dollar moved in the band of Rs154.60 and Rs155.30, respectively.

Dealers said increased dollar supplies and the global credit rating agency Fitch affirming Pakistan’s long-term foreign currency improved the market sentiment.

Fitch kept the country’s credit rating unchanged at B- with a stable outlook. External vulnerabilities have been reduced over the past year as a result of policy actions and financing unlocked through an International Monetary Fund (IMF) programme, which have narrowed the current account deficit and supported a modest rebuilding of reserves, according to Fitch.

“Still, external finances remain fragile with relatively low foreign-exchange reserves in the context of an elevated external debt repayment schedule and subdued export performance,” it said. The rupee has been supported by increased foreign exchange reserves and higher remittances from Pakistani workers abroad.

Remittances from overseas Pakistani workers rose 3.31 percent to $11.394 billion in the six months of the current fiscal year 2019/20. In December, remittance flows stood at $2.097 billion, compared with $1.819 billion in the previous month.