KARACHI, Pakistan, March 3 Reuters The Pakistani rupee on Friday strengthened 2.38 in interbank closing at 278.46 rupees against the dollar, a day after the central bank raised its policy interest rate by 300 basis points bps to 20, trading data showed.

The rupee , which fell more than 6 on Thursday, was trading at 275.5 against the dollar during the day, up nearly 3.5, after the opening session.

The rupee may have appreciated over the governors statement in the analyst meeting where he says the IMF has not asked to match the border rate, says Mustafa Pasha, chief investment officer at Lakson Investments.

Pasha added that expectations of reaching a staff level agreement soon have shot up now that the government has floated the currency, withdrawn farmerexport subsidies, and imposed electricity surcharges.

He says, On the other hand, it could be that the SBP has done a soft intervention or overseas Pakistanis decided to remit after seeing the rupee touch 286 against the dollar.

The value of the local currency has been depreciating amid delays in a funding deal with the International Monetary Fund IMF, which is crucial for the South Asian39;s broken economy faced with a balanceofpayment crisis.

The sides have been negotiating a policy framework since the start of last month to agree on measures to bridge the fiscal deficit ahead of an annual budget around June.

A stafflevel agreement is yet to be signed, which finance minister Ishaq Dar said on Thursday should be…