Rupee ends flat against dollar

KARACHI: rupee closed little changed on Thursday as inflows from export proceeds and remittances offset dollar demand from importers, dealers said.

In the interbank market, the rupee ended at 278.03 to the dollar, compared with Wednesday’s close of 278.04. The rupee increased by 19 paisas in the open market. It was trading at 280.41 per dollar for selling, up from 280.60 in the previous session.

“There has been a steady rise in the availability of dollars because of exporters' dollar sales and remittances; these supplies were enough to meet the demand from importers,” said a currency dealer. “We expect the rupee to stay stable in the coming sessions given the positive market sentiments reinforced by the positive news about the privatisation of state-owned enterprises and the start of talks with the International Monetary Fund for a longer and larger lending programme next month.”

The rupee has remained stable after Pakistan got initial approval from the International Monetary Fund for the disbursement of the final tranche of a $3 billion bailout and expressed interest in another loan programme to support the economy.

Last week, the IMF reached a staff level agreement with Pakistan on the second and final review of a $3 billion standby arrangement. If it is approved the IMF will disburse $1.1 billion for the country next month.