Rupee gains

The rupee extended gains for the second session on Wednesday, amid lack of import payments in the market, dealers said.

The rupee closed at 154.21 against the dollar, compared with the previous closing of 154.28 in the interbank foreign exchange market. In the open market, the rupee continued to trade stronger due to dull demand for the foreign exchange. The local currency ended at 154.25 to the greenback, slightly up from Tuesday’s closing of 154.30.

“There were no bigger payments in the market. Therefore, there was not much demand for the greenback at the current level,” a currency dealer said. “Increased supplies and positive economic data also boosted the sentiment and; hence, the rupee,” he added.

Dealers said the local unit is likely to gain further in the coming days, as optimism over cut in the interest rates keep the sentiments upbeat. Traders expressed the hope that the State Bank of Pakistan (SBP) may ease the monetary policy to help boost economy. The SBP is scheduled to announce monetary policy this month.

Earlier on Tuesday, SBP Governor Dr Reza Baqir told Public Accounts Committee that inflation may see a downward trend in the coming months. He said the rise in inflation was temporary and because of supply disruptions.