Rupee strengthens

KARACHI: The rupee extended gains for the second straight session on Thursday on the back of tepid dollar demand for import payments, dealers said.

The rupee closed 0.07 percent higher at 160.62 against the dollar, compared with Wednesday’s closing of 160.50 in the interbank market.

The rupee; however, ended slightly weaker at 160.75 against the dollar in the open market. It had finished at 160.70 in the previous session. “The rupee continued to post gains in the last two sessions due to mild demand, amid insignificant payments,” a currency dealer said.

“Some dollar selling by exporters also supported the rupee during the trade.” Traders didn’t react negatively to the current account deficit in December.

Pakistan recorded a current account deficit of $662 million in December, after remaining in surplus for the last five months due to higher imports.

Dealers anticipate the rupee to trade in a stable range in the coming session ahead of a central bank policy meeting on Friday. Traders will watch the SBP’s decision for future direction. The State Bank of Pakistan is expected to keep the policy rate unchanged at 7 percent.