Rupee strengthens

KARACHI: The rupee posted gains against the dollar on Thursday on the back of reduced dollar demand from importers and healthy inflows, dealers said.

In the interbank market, the rupee closed at 160.29 against the dollar, compared with the Wednesday’s closing of 160.49. The rupee rose 20 paisas during the session.

In the open market too, the rupee gained 20 paisas to end at 160.50 against the dollar.

Dealers said the local unit gained ground due to minimal importers’ demand for the dollars. Moreover, supplies of the greenback were also strong.

The local currency traded in the band of 160.14 and 160.50 during the day.

“There was a lack of payment pressure. The news of increasing remittances into Roshan Digital Account and rise in the foreign exchange reserves helped lifted sentiment in the market,” a currency dealer said.

“Since payments are usually on the lower side on Friday, we expect the rupee to close the week at 160.20 per dollar.”

Positive sentiment about the outlook of the economy is prevailing in the market, dealers said. A report on Pakistan Investment Outlook 2021 issued by the Taurus Securities Limited sees overall economic recovery, expecting the economy to grow at 1.9 percent this fiscal year.

The report also expects improving macroeconomics, including stable external outlook in FY2021.