Rupee inches up

KARACHI: The rupee gained slightly against the dollar in the interbank market on Thursday, closing at 178.12 per dollar, compared with Wednesday’s close at 178.15.

In the open market, it ended at 180 versus the greenback. It had finished at 179.90 in the previous session.

Dealers said they expected the local unit to stay steady in coming days.

“Dollar supplies were healthy and met the demand therefore the domestic currency edged up,” said a foreign exchange dealer.

“We think the rupee will trade within existing ranges in the sessions ahead. We don’t think the domestic currency will gain more from reports that the country moves forward with the IMF (International Monetary Fund)’s $6 billion Extended Fund Facility,” he added.

The finance ministry’s spokesperson confirmed that the sixth review of the IMF’s loan programme would be presented to its board on January 12.

The government is confident that it would fulfill the two main conditions; approval of the State Bank of Pakistan Amendment Bill, 2021 and the Supplementary Finance Bill set by the Fund to win its loan tranche before the date set to present the review.

Traders will continue to monitor the evolving situation on the IMF programme front for clues on the rupee in the near-term. Pakistan will secure a $1 billion tranche of the IMF funding once its board approves it following implementation of the prior actions.