The Pakistani rupee remained firm against the US dollar last week, supported by improved investor sentiment, rising foreign inflows and a narrowing gap between interbank and open market rates.

Market confidence was bolstered by investment agreements worth $10 billion signed through the Pak-China e-Mining platform, alongside broad-based joint venture deals with China.

Pakistan’s return to global bond markets and expectations of up to $20 billion in fighter aircraft export agreements also supported the local currency.

The rupee drew further strength from rising workers’ remittances and inflows into Roshan Digital Accounts, which reached $11.70 billion.

Official foreign exchange reserves stood at $16.1 billion, while forecasts that reserves could exceed $40 billion by December added to positive sentiment.

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In addition, a continued crackdown against dollar smuggling helped limit demand in the open market. Over the week, the difference between interbank and open market dollar rates narrowed to Rs1.05.

In the interbank market, the US dollar slipped by 9 paisa to close at Rs279.77, while in the open market it declined by 10 paisa to Rs280.82.

The British pound strengthened during the session, rising by Rs7.99 in the interbank market to Rs385.47 and gaining Rs3.40 in the open market to settle at Rs388.56.

The euro also recorded gains, advancing by Rs5.69 in the interbank market to Rs333.99, while in the open market it rose by Rs2.77 to Rs336.84.

Among regional currencies, the Saudi riyal edged down by 4 paisa in the interbank market to Rs75.50, but gained 3 paisa in the open market to Rs75.40.

The UAE dirham slipped by 2 paisa in the interbank market to Rs76.17, while in the open market it increased by 4 paisa to Rs77.29.