Rupee ends slightly stronger against dollar

KARACHI: The rupee closed marginally stronger on Tuesday owing to subdued dollar demand from importers.

In the interbank market, the rupee ended at 278.32, slightly up from Monday’s close of 278.41.

Dealers said the rupee rebounded from previous losses as there was less demand for dollars from importers and exporters sold dollars, helping the rupee gain ground against the dollar.

The rupee remained stable at 280 against the dollar in the open market.

Dealers anticipate that the rupee will stay within a certain range until the final approval of Pakistan’s new $7 billion loan programme from the International Monetary Fund (IMF).

The IMF has not yet included Pakistan in the calendar of countries for which its executive board is scheduled to consider loan approval or Article IV consultations until September 4, 2024.

Pakistan is actively seeking to bridge the external funding gap by engaging with Middle Eastern countries. There are reports that Pakistan has asked Saudi Arabia to increase its lending by about $1.5 billion from its existing $5 billion portfolio to help bridge the external financing gap needed for the IMF’s 37-month bailout package pending board approval.

Saudi Arabia has proposed acquiring a 15 per cent stake in the Reko Diq mining project, as well as providing funding for infrastructure development around the site. Pakistan has established a negotiation committee to evaluate the Saudi proposal and recommend a final price for approval by the federal cabinet.