Rupee flat

The rupee ended firmer against the dollar in the interbank foreign exchange market on Tuesday, dealers said.

It closed at 156.62 to the dollar, unchanged from the previous close. However, the currency pair lost value versus the greenback in the kerb market because of an uptick in the demand for foreign exchange.

The rupee ended at 156.80/dollar, compared with 156.60 on Monday. Currency dealers said the rupee traded in a range-bound manner, amid mild dollar demand from importers.

“There was no extraordinary demand. Importers bought dollar to cover small payments,” a foreign exchange dealer said. The rupee posted gains in the previous session due to dollar selling by exporters,” he added.

“We see range-bound trading in the rupee to continue this week.” Data issued by the State Bank of Pakistan showed that repatriation of profit and dividends on foreign investment rose to $138.2 million in July 2019 from 136.7 million a year ago.

Pakistan’s foreign exchange reserves rose to $15.629 billion as of August 23, compared with $15.604 billion in the previous week. Foreign exchange reserves held by the State Bank of Pakistan increased $32 million to $8.271 billion.