Rupee holds firm as inflows offset import demand

KARACHI: The rupee was steady against the dollar on Thursday, as a balance of supply and demand for the greenback in the market offset the impact of a weaker open market rate.

The rupee closed at 279.67 per dollar in the interbank market, the same level as Wednesday, according to the State Bank of Pakistan.

However, the rupee lost some ground in the open market, where it was quoted at 280.94 for selling, down from 280.86 a day earlier, according to the Exchange Companies Association of Pakistan. Dealers said the rupee was supported by strong inflows from exporters and remittances, which helped meet the demand from importers.

Pakistan's current account recorded a surplus of $397 million in December, the first positive balance in six months, as exports rose and imports fell.

The country also received $705.6 million from the International Monetary Fund last week, the second tranche of a $3 billion loan programme. The United Arab Emirates also extended a $2 billion loan for another year.