Rupee strengthens

The rupee ended slightly higher against the dollar in the interbank market on Tuesday due to lacklustre demand for the greenback from importers. The local currency closed at 154.41 against the dollar, compared with the Monday’s closing of 154.43.

In the open market, the rupee gained five paisas to finish at 154.50 versus the greenback. “The market was quite dull and the rupee traded in the narrow ranges of 154.41 and 154.44 to the dollar,” a forex dealer said.

“There was no payments pressure. Some payments had been covered in the previous session,” he added. Traders; however, were awaiting the result of the policy level negotiations between the government and the International Monetary Fund (IMF) delegation for the third installment of $450 million loan.

The Federal Board of Revenue is seeking further reduction in its tax collection target. The Fund; however, has asked the revenue board to achieve the tax target by increasing the number of non-tax revenues. “There is not much movement expected in the rupee until the IMF’s review goes on,” another dealer said.

“I think 154.40-154.50 can be the rupee’s range for this week.” Traders were concerned about the reports that the outbreak of coronavirus could have negative implications for Pakistan’s economy. The IMF mission has expressed concerns over coronavirus impact on the country’s economy.