Rupee gains on rising forex reserves

KARACHI: The rupee strengthened against the dollar on Friday as Pakistan’s central bank’s foreign exchange reserves reached a nearly two-and-a-half-year high, following the receipt of the first instalment of a $7 billion loan from the International Monetary Fund (IMF).

The rupee gained 0.08 per cent, closing at 277.51 against the dollar, compared with 277.74 in the previous session.The local currency gained ground versus the US dollar in the open market. The rupee was trading at 279.84 against the US dollar, slightly up from 279.86 during the previous trading session. In the open market, the local unit edged higher against the dollar. The rupee traded at 279.84 per dollar, compared with 279.86 in the previous session. Dealers attributed the rupee’s recovery to an improved supply of dollars. They noted that the increase in forex reserves has provided much-needed stability to the exchange rate.

According to data released on Thursday, the reserves held by the State Bank of Pakistan surged by $1.168 billion to $10.7 billion, the highest since April 2022.The total reserves of the country rose by $1.11 billion to $15.983 billion, the highest level since June 2022. However, the reserves of commercial banks dropped by $58 million to $5.281 billion. Governor State Bank of Pakistan Jameel Ahmad at an event on Wednesday said that the reserves are enough to cover more than two months of imports.