Rupee extends gains on third day

KARACHI: The rupee extended gains for a third straight session versus the dollar in the interbank market on Thursday, thanks to dollar conversions from exporters.

The rupee closed at 278.37 to the US dollar, marginally lower than its previous closing of 278.40.The rupee strengthened against the dollar in the open market, closing at 280.18, up from 280.27 in the previous session.

Dealers said that the local unit consistently increased in value relative to the US dollar because exporters’ dollar sales exceeded importers’ dollar demand.“We anticipate that the rupee will remain steady in the coming sessions, but market participants will be keeping an eye on the approval of the 2024-25 budget, which will pave the way for the finalisation of the deal with the International Monetary Fund for a new loan programme for Pakistan,” a currency dealer said.

“This will determine the rupee's future direction,” the dealer added.The finance ministry sent several recommendations to the IMF, including removing exporters from the normal tax regime and potential tax relaxations for the salaried class, said Chase Securities in a note.According to news reports, the IMF has not consented to these recommendations. However, the IMF has agreed to maintain the federal excise duty (FED) on cement at previous levels.