Pakistani rupee extends gains against US dollar
The Pakistani rupee extended gains for the second straight session in both the currency markets, as dollar demand and easing concerns over US-Iran war hysteria helped the currency rise.
Dealers said that the rupee closed at 154.83 to the dollar, compared with the previous closing of 154.88.
The rupee also managed to gain 50 paisas against the dollar in the open market.
The local unit ended at 155.20 versus the greenback. It had settled at 155.70 in the previous session.
Dealers said the rupee was likely to remain flat in the coming sessions.
“The currency is strengthening due to few import payments, which increased supply of the greenback,” a dealer said.
“Healthy foreign exchange reserves, improvement in the current account balance and strong foreign inflows expects to keep the rupee stable at the current levels.”
In a statement, the State Bank of Pakistan (SBP) reiterated that currently market forces were controlling the exchange rate.
It showed an impression that the government was manipulating it was not true.
“Under the International Monetary Fund (IMF)-supported program, there is no agreed target level for the exchange rate. ER [exchange rate] is market-determined,” the SBP said in a tweet on Friday.
IMF’s new assumptions suggest that the average exchange rate at the end of this fiscal year could be Rs160.64 to a dollar.