Rupee appreciates by 6 paisa against US dollar in early trade

KARACHI: The Pakistani rupee extended an upward trend against the US dollar at the start of trade on Friday, ARY News reported.

According to forex dealers, the rupee appreciated by 6 paisa and is trading at 154.60 against the greenback in the interbank market.

The local currency rose 11 paisa to finish at 154.66 against the US dollar yesterday as against Wednesday’s closing of 154.77.

Meanwhile, the rupee settled at Rs155 against the dollar after appreciating by 10 paisa in the open market on Thursday.

Forex dealers attributed the appreciation of the rupee to increased dollar supplies and improved market sentiment.

Earlier, on Jan 14, Fitch rating agency had forecast that Pakistan’s general government debt (including guarantees and International Monetary Fund borrowing) will fall to about 80 percent by end of next fiscal year due to faster nominal GDP growth and fiscal consolidation.

Read More: SBP reserves jump $82mn to $11.58bn

“The government has taken steps to manage domestic debt rollover risks following the cessation of borrowing from the State Bank of Pakistan (SBP) under the Extended Fund Facility (EFF) of the IMF,” the New York based rating agency said.

It said in particular, the government had reprofiled its SBP debt stock into longer-tenor instruments and had sought to lengthen maturities by issuing longer-term domestic bonds.