Rupee recovers slightly against dollar after export selling

KARACHI: The Pakistani rupee rebounded from previous losses to close marginally stronger against the US dollar on Tuesday, driven by increased dollar sales from exporters, according to currency dealers.

The rupee settled at 278.4, per dollar in the interbank market, compared with the previous close of 278.5.However, the rupee lost ground and dropped 50 paisas against the dollar in the open market. The rupee was trading at 281 per dollar, down from 280.5 in the previous session.

“After some exporters sold dollars in the market, the supply of dollars increased and the rupee recovered some of its losses from the previous session,” said a currency dealer.The local currency will remain range-bound in the coming trading sessions. The rupee’s short-term prospects will depend on the Pakistan central bank’s decision regarding interest rates this month and its finalization of a new loan programme with the International Monetary Fund, according to dealers.

According to reports, Pakistan’s finance minister will travel to Beijing this week on behalf of Prime Minister Shehbaz Sharif to urge the Chinese government to restructure the country’s $15 billion energy debt. “Pakistan's debt situation has been a significant topic of discussion since last year, frequently featuring in economic debates,” said Chase Securities in a note.“Opinions are divided, with some experts suggesting the situation is manageable, while others deem it unsustainable,” it said.