Rupee gains in interbank market

KARACHI: The Pakistani rupee ended higher against the US dollar in the interbank market on Friday.The rupee closed at 280.97 to the dollar, compared with its previous close of 281.07.

In the open market, the rupee also declined, trading at 282.72 against the dollar. It had ended at 282.58 in the previous session.Dealers said that the local currency reverted to the established support level of 280, attributed to dollar sales by exporters following diminished concerns of escalation between India and Pakistan in the wake of a recent terrorist attack in Indian-occupied Kashmir.

Analysts said that a few days have passed since the incident, and both governments seem to have adopted calculated measures, predominantly characterised by diplomatic restraint. Consequently, they expect that fears over further escalation would progressively subside in the coming days, facilitating a recovery in market sentiment.

“On the global front, the initiation of US-China trade negotiations is helping ease trade-related concerns, which is positively influencing global financial markets. Additionally, the ongoing diplomatic engagement between the US and Iran is progressing constructively, with the potential to exert downward pressure on oil prices,” said Chase Securities in a note.