Rupee extends gains

Our Correspondent
Saturday, Mar 18, 2023

KARACHI: The rupee extended gains against the dollar for the second consecutive session on Friday.

In the interbank market, the rupee ended at 281.71 per dollar, compared with Thursday’s close of 28242. It increased by 0.25 percent day-on-day.

The local unit gained 50 paisas to settle at 285 to the dollar in the open market.

Importers reduced their demand for dollars, while exporters sold dollars, which helped the rupee gain ground, according to currency dealer.

The uptick in the foreign exchange reserves also boosted market sentiment.

Dealers expect the rupee will continue its upward trend in the coming sessions due to further improvement in the country’s forex reserves.

“The State Bank of Pakistan has received today in its account from Chinese Bank ICBC [Industrial and Commercial Bank of China] $500 million. It will shore up forex reserves of Pakistan,” Pakistan’s finance minister Ishaq Dar said in a Tweet.

The country’s foreign exchange reserves held by the central bank slightly increased by $18 million to $4.319 billion in the week ending March 10.

The market is still waiting for the International Monetary Fund to make a promising announcement regarding the resumption of the loan programme. The government said that before the multilateral lender approves a $6.5 billion bailout deal, the IMF wanted "friendly" countries to fulfil their obligations to finance the cash-strapped nation.