Karachi: The rupee strengthened against the dollar in both foreign exchange markets today due to various factors.

The ongoing economic reforms under the IMF program have strengthened the ability to repay external debts through financial stability, increased remittance inflows and increasing foreign exchange reserves due to increasing investment interest in Pakistan from the outside world, strengthening confidence in the economy. The dollar has been depreciating throughout the trading session due to positive sentiments.

The dollar had fallen by 44 paisa to Rs. 281.97 paisa in the interbank market during the trading session after Moody’s declared Pakistan’s outlook as “stable”.

But as supply improved, market forces led to demand, and the dollar closed at Rs 282.22 by the end of trading, down 19 paise, while in the open currency market, the dollar closed at Rs 284.74 by a decrease of 16 paise.

Experts say that stable foreign exchange reserves and financial discipline have led to the rating upgrade. Positive feedback from international institutions has emerged on the progress in reforms under the IMF program, while the ongoing reform program has increased global confidence in Pakistan.