Rupee strengthens against dollar amid export growth and investment hopes

Karachi: The Pakistani Rupee continues to gain strength against the US Dollar in both the interbank and open markets.

Several factors have contributed to this trend, including a 17% increase in Pakistani exports to the US during the first two months of the current fiscal year, reaching $1.11 billion; a drop in global crude oil prices due to a proposed peace plan in Gaza; and planned investment by Finnish company "Metso" in Reko Diq, bringing advanced technology and training.

Additionally, expectations of $2 to $3 billion in annual foreign investment in Reko Diq, new strategies for investment in Pakistan’s energy, minerals, oil, and gas sectors, and anticipated successes in securing the next $1 billion IMF loan tranche along with $1.3 billion in climate financing have also contributed to the Rupee's appreciation.

In the interbank market, the Dollar at one point fell by 25 paisas, reaching Rs281.10, but as supply improved and demand for imports rose, it closed at Rs281.31, down just 1 paisa from the previous rate.

In the open currency market, the Dollar also weakened slightly, closing at Rs282.35, down by 5 paisas.