Rupee gains

KARACHI: The rupee gained slightly on easing dollar demand from importers on Tuesday, and a positive sentiment after PM Imran Khan announced relief package to mitigate the impact of inflation also helped the domestic currency to appreciate, dealers said.

The local ended at 177.41 to the dollar, compared with Monday’s close of 177.47 in the interbank market.

“The local unit managed to post nominal gains due to slowdown in import payments and tracking positive sentiments, following the PM’s announcement of reducing petroleum and electricity prices,” a dealer said.

“The reduction in the energy prices came at a time when international commodity prices are soaring. The cut in the petroleum and electricity prices has sparked hopes for an ease in inflationary pressures in coming months,” he added.

Dealers cast doubt about whether the rupee can sustain the gains given increasing external account pressure and Russian-Ukraine war.

The prime minister increased allowance under Ehsas programme and unveiled incentives for the Information Technology sector, which will the sector help to become tax free for startups and new ventures. The capital gain tax on startups will be removed.

The finance minister reassured that the International Monetary Fund (IMF) was on board with the announced package. In the open market, the rupee closed unchanged at 178.50 per dollar.