Rupee highest in a month

KARACHI: The rupee strengthened to its highest in more than a month on Friday, buoyed by reduced dollar demand from importers for payments as well as expectations for revival of the IMF funding, dealers said.

In the interbank market, the local unit ended at 176.06 to the dollar, its strongest level since November 29. It had closed at 176.38 on Thursday.

“A slowdown in importer demand as a result of the measures taken by the central bank and the government to curb imports have pushed the rupee up,” said a foreign exchange dealer.

The expected approval of the sixth review of Pakistan’s Extended Fund Facility (EFF) by the International Monetary Fund’s (IMF) executive board in a few weeks also boosted sentiment on the local currency.

“Today’s rupee appreciation is also sentiment-based. Traders assume the IMF board will clear the sixth review of its $6 billion loan programme for the country at a review meeting to be held later this month following the passage of two bills from the national assembly,” he added.

The revival of the IMF funding is expected to help the country’s external current account as it will lead foreign inflows from other multilateral and bilateral agencies.