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Rupee inches up

Our Correspondent
Saturday, Aug 05, 2023

KARACHI: The rupee extended gains for the second consecutive session on Friday due to improved dollar supply and weak demand from importers, dealers said.

The rupee ended at 286.97 per dollar, 0.08 percent stronger than Thursday’s close of 287.20 in the interbank market.

In the open market, the rupee gained 50 paisas to settle at 292 to the dollar. “Demand and supply are driving the exchange rate movement. Due to remittance inflows, the market's supply of dollars improved. Dollar demand fell as a result of fewer import payments,” said a currency dealer.

Some dealers said that the rupee’s rebound was simply an adjustment following the State Bank of Pakistan’s announcement of its monetary policy earlier this week, which held the main interest rate steady at 22 percent due to the anticipation of a drop in inflation in the coming months.

Pakistan’s foreign exchange reserves held by the central bank slightly decreased by $32 million to $8.15 billion in the week ending July 27 due to the repayment of external debt.

The country’s total reserves decreased by $70 million to $13.46 billion. Commercial banks’ reserves also decreased by $38 million to $5.30 billion.