Rupee stable on demand-supply equilibrium

Pakistani currency on Wednesday closed stable at Rs278.30 against the US dollar in the inter-bank market, indicating that demand and supply of the foreign currency have hit equilibrium. Before closing at the previous day’s level, the currency briefly extended gains by Rs0.13 and reached its intra-day high at Rs278.17 against the greenback on optimism Prime Minister Shehbaz Sharif would be able to get promises of new investment from Beijing under the China-Pakistan Economic Corridor (CPEC). He began the trip to China on Wednesday. Pakistani authorities expect new investment of $2 billion under CPEC. Besides, PM Sharif is expected to win the rescheduling of outstanding dues worth over Rs500 billion of the Chinese power producers or get new loans to repay them. The upcoming heavy foreign debt repayment amounting to $10 billion by the end of July did not let the rupee sustain the intra-day gains by the close of market.