KARACHI, Sept 5: The rupee strengthened on Friday thanks to an increased supply of dollars and lack of import payments, dealers said.

The rupee closed at 76.40/50 to the dollar compared with Thursday’s closing of 76.85/95. It hit a record low of 77.45 on Wednesday due to heavy oil payments.

“There was some hidden supply of dollars in the market,” said a currency dealer.

Dealers said there had been rumours of State Bank of Pakistan intervention over the past few days to keep the rupee from weakening beyond 77 to the dollar.

However, dealers said there had been no intervention on Friday and there was genuine supply of dollars.

The rupee has lost 19.4 per cent against the dollar this year, and foreign currency reserves have fallen sharply due to a deteriorating balance of payments position.—Reuters