Monday July 22, 2024

Rupee gives up previous session’s gains

By Our Correspondent
July 11, 2024
A man counting RS5,000 currency notes. — AFP/File
A man counting RS5,000 currency notes. — AFP/File 

KARACHI: The rupee fell slightly in the interbank market on Wednesday after trading stronger in the previous session as importers bought dollars to make payments, dealers said.

The rupee ended at 278.51 to the US dollar, compared with its previous close of 278.40.However, the local currency did give up Tuesday’s losses in the open market, closing at a stronger level of 280.55 per dollar, up from 281 in the previous session.

“Importers entered the market to buy dollars, but export proceeds provided a little amount of inflows. This put a bit of pressure on the rupee,” said a currency dealer.According to analysts, the completion of the IMF programme will be a key turning point for the market, indicating the continuation of the exchange rate and economic stability as well as a slowdown in inflation as long as the fiscal account is kept in check.

A forward action plan for addressing the flow and stock of circular debt in the energy sector will also be included in the IMF programme text.Remittances saw a notable 44 per cent annual growth in June 2024, hitting $3.2 billion. If more dividend repatriation is permitted to clear the backlog, the current account may be in surplus or just slightly negative in June, despite a comparatively higher trade deficit.