Thursday February 22, 2024

Rupee snaps 7-day losing streak

By Our Correspondent
November 23, 2022

KARACHI: The rupee on Tuesday broke the dollar’s rally after seven consecutive sessions on matching demand and supply of the greenback, dealers said.

In the interbank market, the local unit ended at 223.42 to the dollar, compared with Monday’s close of 223.66. It rose by 0.11 percent on a day-on-day basis.

However, the domestic currency ended unchanged at 231 per dollar in the open market.

Dealers said the rupee gained a lost ground on matching demand and supply of the greenback in the market.

The reduction in the current account deficit is also expected to help ease some pressure on the falling foreign exchange reserves. The current account gap narrowed 68 percent to $567 million in October.

According to dealers, the lack of a timetable for incoming financing from friendly nations, delayed IMF-Pakistan negotiations, and the country’s increasing risk of failing to service its foreign debt have a negative impact on the market sentiment.

Though the current account gap has shrunk, the exports and remittances have suffered significantly. The inflows have slowed, and traders are anxiously waiting for the World Bank to send the essential relief funding.

In upcoming weeks, dealers anticipate that the rupee will be under pressure but range-bound. The future direction of the local unit will depend on some indication of political stability and any reports of incoming inflows from the friendly countries.