Rupee continues to recover

KARACHI: The rupee rose further against the dollar in both currency markets on Wednesday on political stability and low demand for the greenback from importers, dealers said.

In the interbank market, the local unit closed at 181.82 to the dollar, compared with Tuesday’s close of 182.02. It gained 20 paisas or 0.11 percent during the session.

The rupee gained 1.50 rupees to end at 182 versus the greenback in the open market.

Dealers said the domestic currency continued gaining ground on slowdown in the demand for the US currency from importers and country’s economic outlook amid political stability.

“The rupee is stable now and we expect it to stay around 181 level in the coming days,” said a currency dealer.

The political stability after the new Prime Minister Shehbaz Sharif took office and likelihood of resumption of stalling International Monetary Fund’s $6 loan programme helped the rupee gain in last four sessions.

The rupee hit all-time lows since the vote of no-confidence moved against the former PM Imran Khan by opposition parties. The political vacuum of having no government, deferment of the IMF programme, lack of clarity of China’s roll in deposit and reduction in the foreign exchange reserves had contributed to the rupee’s slide.