Rupee gains versus dollar

KARACHI: The rupee recovered losses from the prior session to close marginally higher in the interbank market on Tuesday.

The rupee ended at 280.76 per dollar, compared with the previous close of 280.86. However, the rupee fell slightly in the open market. It traded at 282.37 against the dollar, down from 282.33 on Monday.

Dealers said the local unit gained ground due to sluggish dollar demand from importers. Analysts expect the rupee to remain trade range-bound this week, supported by a record monthly current account surplus, the depreciation of the US dollar against other major currencies, and an upgrade in the country's credit rating.

In March, Pakistan recorded an all-time high current account surplus of $1.2 billion. Analysts predict a total surplus of $1.5 billion for the entire fiscal year, marking a milestone not achieved in over two decades. This is expected to provide support for the local currency.

Since January, the dollar index has declined by 10 per cent and is likely to drop further. This situation offers emerging market currencies like the rupee some much-needed breathing room.