Rupee inches up

KARACHI: The rupee on Tuesday edged higher against the dollar in the interbank market on better inflows from exporters and positive sentiment about the outlook for the country’s economy, dealers said.

The local unit ended at 213.90 to the dollar, compared with Monday’s close of 213.98.

“There is a forward selling by exporters, which has supported the local unit,” said a currency dealer.

The flow of dollars is coming from open market and retail investors as the money hoarded over the last few months is now coming to the market, according to dealers.

The market is also hopeful that developments on the International Monetary (IMF) loan programme are positive and the country is expected to receive the IMF’s tranche by the end of this month. The IMF money will help stabilise the economy, shore up reserves and lend support to the rupee.

To approve a rescue package for Pakistan, including the disbursement of approximately $1.18 billion, the IMF called a meeting of its executive board on August 29.

The action follows the completion of the $4 billion in bilateral financing from four friendly nations and would open the door for an immediate transfer from the IMF, which is anticipated to be in Pakistan's account by the close of business on August 31.

In the open market, the rupee ended weaker at 213 to the dollar, compared with 210 in the previous session.