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Sunday April 14, 2024

Rupee steady on balanced dollar demand and supply

By Our Correspondent
March 01, 2024
Stack of Rs5,000 and Rs1,000 notes. — AFP/File
Stack of Rs5,000 and Rs1,000 notes. — AFP/File

KARACHI: The rupee was little changed on Thursday as dealers said the demand and supply of dollars in the market were balanced. The rupee closed at 279.11 against the dollar, barely changing from its previous close of 279.12 in the interbank market.

In the open market, the rupee remained stable for the second straight session. The local currency closed flat at 282.04 against the US dollar. “A good supply of US dollars supported by strong inflows from export proceeds, according to dealers, is what kept the rupee stable versus the greenback,” said the foreign exchange dealer.

The rupee was supported by the economic optimism, according to dealers. The market is expecting rate cuts, which are fueled by expected declines in inflation figures from next month onwards. Moreover, ongoing negotiations with the International Monetary Fund regarding the next loan programme are another important element influencing market sentiment going forward.