Rupee extends gains

KARACHI: The rupee extended gains for the second consecutive session on Wednesday due to subdued dollar demand from importers, dealers said.

In the interbank currency market, the rupee closed at 159.28/dollar, compared with the Tuesday’s closing of 160.09. It rose 81 paisas during the session. The rupee has been gaining grounds on the back of sluggish dollar demand for import payments, healthy inflows and positive sentiment about the economic outlook.

The domestic currency has gained 1.1 percent, or Rs1.77 so far this week.

In the open market, the rupee also ended stronger at 159.80 against the dollar. It had finished at 160.60 in the previous trade.

Dealers said the consolidation of the rupee has been stopped. This could lead the currency retest the 158 level in the near-term.

Their view is supported by healthy surplus in the current account, stronger remittances and exports and subdued import demand. While no official numbers of Roshan Digital are published, bank operatives are bullish of strong inflow.

The central bank governor said many of the domestic activity indicators are picking up and the construction and the housing would give boost to the demand in the coming months.