Rupee remains stable against US dollar

• Rupee value remains unchanged at Rs170.01 against the US dollar in the inter-bank market on Friday.
• Local currency had gained around Rs5.30 against the greenback during the period of Oct 27-Nov 3.
• Tahir Abbas had predicted that the rupee will remain in the consolidation phase.

KARACHI: The rupee remained stable against the US dollar at Rs170.01 in the inter-bank market on Friday compared with Thursday's close, according to the State Bank of Pakistan (SBP).

The rupee had snapped a six-day winning streak against the dollar on Thursday, losing 0.02% to close the session at Rs170.01 in the interbank market.

The rupee had been on an uptrend since Pakistan received funds worth $3 billion from Saudi Arabia last week and had gained around Rs5.30 against the greenback during the period of October 27-November 3.

According to the data released by the central bank on Thursday, the foreign exchange reserves held by SBP rose 0.3% on a weekly basis.

On October 29, the foreign currency reserves held by the SBP were recorded at $17,199.6 million, up $53 million compared with $17,146.7 million on October 22.

Meanwhile, overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $23,925.9 million. Net reserves held by banks amounted to $6,726.3 million.

Earlier, speaking to Geo.tv, Arif Habib Limited's Head of Research Tahir Abbas had said that the correction during the week was in line with market expectations.

Analysts suggest that clarity regarding the International Monetary Fund (IMF) and declining trade deficit has improved rupee-dollar parity.

Abbas had predicted that the rupee will remain in the consolidation phase as with the revival of the IMF programme, Pakistan will also get funds/loans from World Bank and Asian Development Bank.

He had said that keeping in view the measures taken by the government and central bank, the local currency is expected to touch Rs167-168 against the US dollar.