KARACHI: The rupee closed marginally higher on Friday ahead of the Budget FY27 presentation on the same day, with analysts and markets widely anticipating measures to raise revenue and cut spending while protecting the poor masses of the country.
The rupee closed at 278.32 against the dollar in the interbank market, up from its close at 278.35 in the previous session.The continued rise in the foreign exchange reserves, driven by robust remittances and inflows from the International Monetary Fund, supported the local currency. The rupee has appreciated by 1.9 per cent against the dollar so far this fiscal year.
Analysts ascribe the rupee’s appreciation to fiscal and monetary tightening, as well as a strong external account. In addition, Pakistan has made an entry to the international market after four years, where the government was successful in raising $750 million through a Eurobond and became the first country to raise funding from the Chinese market through panda bonds.
