Rupee rises further

KARACHI: The rupee continued gaining momentum against the dollar on Friday on the back of soft demand for the greenback from importers and healthy inflows, dealers said.

The rupee closed at 164.51 against the dollar, compared with the Thursday’s closing of 165 in the interbank market. The domestic currency rose 49 paisas during the session.

The rupee appreciated Rs1.28 against the dollar during the week.

Dealers attributed the rise in the rupee’s value to increasing supply of the dollar in the market.

“Recovery in the rupee is observed by inflows in the foreign exchange market,” a dealer said.

“Sources of inflows are remittances, enthusiastic response and investment in Roshan Digital Account, and Naya Pakistan Certificates from non-resident Pakistanis,’ the dealer said, adding that an approval of $300 million from ADB [Asian Development Bank] and good export receipts also helped the currency appreciate against the greenback. Dealers expected the rupee to maintain the same level in the coming week and may be traded in the range of 164 and 165 versus the dollar.

In the open market, the rupee also continued a rising trend, as it closed at 164.80 against the dollar, compared with the previous closing of 165.70.