Pakistani rupee strengthens to nearly 41 vs UAE dirham

Pakistani rupee strengthens to nearly 41 vs UAE dirham

Pakistan rupee rose to nearly 41 against the UAE dirham on Wednesday after Islamabad raised $2.5 billion in Eurobond issuance, taking the South Asian country's foreign exchange reserves to a record high.The rupee rose over one per cent from 41.68 on Tuesday to 41.17 versus UAE dirham on Wednesday mid-day. But later it lost some ground and was trading at 41.47 in the evening.Analysts and businessmen foresee the rupee gaining further in the near future owing to consistent flow of foreign currencies.Hamad Azhar, Pakistan's finance minister, said rupee currency is standing on its own without the support and interference of the central bank.$2.5 billion EurobondsPakistan successfully raised $2.5 billion (Dh9.17 billion; Rs380 billion) through Eurobonds, taking the country's foreign exchange reserves to an all-time high of $23.5 billion.The previous all-time peak in foreign exchange reserves was seen in 2015-16 when reserves had touched $23 billion, but they later fell to $16.4 billion as government began to sell dollars in the market to support the local currency.The dollar-denominated euro bonds were issued in three tranches with 5-year bonds offering six per cent interest rates, 10-year bonds offer 7.375 interest, while 30-year bonds were offered at 8.875 per cent interest rates.Hamad Azhar,