Rupee witnesses stability on last day of the business week

Rupee witnesses stability on the last day of the business week. On Friday US dollar traded at Rs 154.47 against Rupee in the inter bank market.

Earlier The rupee strengthened against the dollar in the interbank market on Thursday on healthy supplies and weak demand from importers,

The local currency closed at 154.47 to the dollar, up from Wednesday’s closing of 154.56.

In the open market, the rupee closed unchanged at 154.80/dollar.

Dealers said the local unit gained grounds due to increased supplies and insignificant demand for the greenback.

“Inflows of foreign investment, higher remittances, increased foreign exchange reserves and improvement in the balance of payments helped drive the currency up against the dollar,” a dealer said.

Market participants also optimistic about further contraction in the current account deficit in the coming months; following the central bank’s incentive to increase exports growth.

The State Bank of Pakistan has enhanced the maximum limit for setting up long-term export-oriented projects to Rs5 billion/project from Rs2.5 billion under the Long Term Financing Facility.

It has also provided additional concessional financing of Rs200 billion to banks, including Rs100 billion under the Long Term Financing Facility (LTFF) and Rs100 billion under Export Refinance Scheme.

In the first six months of the current fiscal year, the current account deficit contracted 75 percent to $2.15 billion.