Rupee ends flat against dollar

KARACHI: The rupee held steady on Thursday because there was enough dollar supply from exporters and remittances to meet importer demand, dealers said.

In the interbank market, the rupee ended at 278.39 to the dollar, compared with Wednesday’s close of 278.40. The rupee also managed to post modest gains in the open market. It was trading at 280.86 per dollar for selling, up from 281.12 in the previous session.

“We saw healthy inflows today as a result of dollar sales from exporters and an increase in remittances from Pakistani citizens employed abroad because of the holy month of Ramazan,” said a foreign exchange trader.

Positive sentiment after the International Monetary Fund and Pakistan reached a staff-level agreement on the second and final review under the standby arrangement also helped the local unit, the trader added.

It was a difficult but quick procedure for the new Finance Minister to successfully complete the IMF review on time, marking a first milestone, according to analysts. “The review garnered more satisfaction than complaints from the IMF. Ongoing reforms, recommended by the IMF, remain a priority both before and after the initiation of the new IMF programme,” said Chase Securities in a note.