Rupee extends gains

KARACHI: The rupee extended gains on the second straight session on Thursday due to the lack of demand for the US currency from importers.

The rupee gained 66 paisas to close at 163.66/dollar in the interbank market. It had ended at 164.32 in the previous session.

In the open market too, the local currency closed stronger at 163.70 against the

dollar. It had finished at 164.50 on Wednesday.

Traders said sluggish demand for the greenback from importers and companies, with exporter dollar conversions resulted in an increase in the rupee value, and the appreciation is expected to continue in the coming days.

Analysts said the current account deficit is likely to be narrowed further and touch $4 billion by the end of this fiscal year.

However, other economic vulnerabilities such as high levels of external debt, drying up of foreign inflows and declining foreign currency reserves could put pressure on the currency.