Rupee gains further against dollar

KARACHI: The rupee extended gains against the dollar for a second consecutive session in the interbank market on Friday.The rupee ended at 277.63 per dollar in the interbank market, compared with the previous closing value of 277.68.In the open market, the local unit increased in value. It was trading at 280.15, up from 280.3 on Thursday.

Dealers said the rupee maintained its upward trend due to positive sentiment following a $7 billion loan approval by the International Monetary Fund’s executive board for Pakistan. Besides, the persistent improvement in the foreign exchange reserves and declining oil prices also boosted investor confidence in Pakistan’s economy.

According to data from the State Bank of Pakistan that was released on Thursday, the country’s forex reserves held by the central bank increased by $24 million to $9.534 billion as of September 20.

The country’s foreign exchange reserves rose by $47 million to $14.873 billion. The reserves of commercial banks increased by $23 million to $5.34 billion.“International oil prices continue to decline, providing a much-needed boost to the Pakistani economy,” said Chase Securities in a note.

“Oil remains the most impactful commodity for Pakistan, influencing inflation, exchange rate stability and overall economic health,” it said.“The current downward trend in oil prices is favourable for the country, with positive implications for inflation and potential interest rate cuts in the near future,” it added.