Rupee strengthens

KARACHI: The rupee ended stronger against the dollar on Tuesday because of the easing payment pressure and positive sentiment, dealers said.

In the interbank market, the rupee closed at 160.64 against the dollar, up from 160.80 on Monday.

In the open market, the rupee ended higher at 160.90/dollar. It had finished at 161.25 in the previous session.

“There were no heavy payments in the market today and the demand for the greenback remained sluggish,” a foreign exchange dealer said.

“The reports of extending financial support from the World Bank to Pakistan and the issuance of Islamic bonds helped positive sentiment in the market,” he added.

The World Bank is preparing a new Country Partnership Framework (CPF) for the next five years from the fiscal year 2022 to 2026 with a possible portfolio of $10 billion to $12 billion for different sectors of the Pakistan economy.

The government intends to issue Ijara Sukuk in the domestic and international markets to raise funds for budget financing and promoting Islamic banking industry.

Dealers said they expect the rupee not to breach 160 level in the coming sessions, but much would depend on the demand and inflows from export proceeds and remittances.