Rupee gains further

KARACHI: The rupee further strengthened on Friday due to soft dollar demand for import payments and selling of dollars by exporters, dealers said.

The rupee closed at 165.83 against the dollar, compared with the previous closing of 166.21 in the interbank currency market. The rupee gained 38 paisas during the session.

In the open market, the rupee ended at 166.20 against the dollar, slightly stronger than 166.30 on Thursday.

Dealers said improvement in supplies and dollar conversions from exporters helped the rupee gain in the previous two sessions. The importers’ dollar demand has eased, dealers added.

Inflows in the shape of remittances from Pakistani expatriates working abroad also supported the domestic currency.

“We expect the pressure on the currency to ease further with more inflows expected in the coming sessions,” a forex dealer at a large commercial bank said.

“The rupee should trade at 165.75 and 166.25 per dollar next week.”

Positive data on the foreign direct investment and the central bank’s forex reserves boosted traders’ sentiment.

Data issued by the State Bank of Pakistan showed foreign direct investment in Pakistan rose 40 percent to $226.7 million in the first two months of the current fiscal year.

The foreign exchange reserves held by the SBP increased to $12.820 billion during the week ended September 11 from $12.807 billion a week ago.