Rupee gains further

KARACHI (Reuters) - The Pakistani rupee gained further on Friday, as dollar inflows continued to be healthy, outmatching the demand for the US currency from importers, and dealers said the rupee can strengthen further in days ahead. The rupee closed at 84.23/30 to the dollar, stronger than the previous day's close of 84.30/38. "Dollar supplies in the market are pretty good, and though there is demand from importers, dollar flows are good enough for that," said a dealer at a foreign bank. The rupee has performed strongly in recent months, hitting an 11-month high last week thanks largely to record inflow of remittances, strong foreign exchange reserves, healthy exports and a current account surplus, according to analysts and officials. Remittances by overseas Pakistani increased by 22.37 percent to more than $8 billion in the first nine months of the 2010/11 fiscal year, and in March a record $1.05 billion was received, according to data from the State Bank of Pakistan. Thanks to the rising dollar inflows, the rupee is up 1.64 percent against the dollar this year. It lost 1.53 percent against the dollar in 2010, and 6 percent in 2009. "I think the rupee should gain a bit further in the coming days, as dollar inflows are expected to hold firm," said another bank dealer.

ePaper - Nawaiwaqt