Rupee strengthens

KARACHI: The rupee registered a minor recovery against the dollar in the currency market on Wednesday, said dealers.

In the interbank market, the rupee ended stronger at 95.97 to the dollar, up from its all-time low of 96.26 a day ago, said dealers.

The local currency managed to gain against the greenback due to decline in the demand for the dollar from importers, they said.

Moreover, the US election affected the market sentiment positively, said a dealer.

Economic experts said President Obama’s reelection is a positive sign for Pakistan, following opening up of the NATO supply lines in August and the release of $1.2 billion under the Coalition Support Fund (CSF).

“This has given markets confidence and has played a key part in stabilising Pakistan’s balance of payments position, leading to ease in inflation and rally in the capital markets,” said Sayem Ali, senior economist at Standard Chartered Pakistan.

Critical for Pakistan is the next disbursement of $600 million expected before the end of the current year and the reelection of President Obama should remove any unanticipated delays in the release of these funds, he said. Therefore, it is expected that the exchange rate will recover further by the year-end.

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