Rupee to stay flat

The rupee posted mild gains as against the US dollar during the outgoing week aided by thin demand from importers.

The rupee inched up 10 paisas in the interbank market during the week. It closed at 138.93 per dollar on Monday, while it settled at 138.83 on Friday.

The local currency gained 50 paisas in the interbank market during the week. It closed at 138.74 against the greenback on Monday, while it finished at 138.23 on Friday. The rupee hovered in the ranges of 139.10/139.30 against the greenback in the open market. Traders expect the rupee to trade in a narrow range over the next week. “The currency is likely to trade below 140 per dollar in the coming week,” a trader said.

“A visit by the Saudi Crown Prince to Pakistan is a positive trigger because it will bring investment and economic prosperity into the country,” the trader added. “However, the market remained muted on this development.”

Saudi Crown Prince Mohammad Bin Salman is due to visit Pakistan on Sunday. The country is expecting eight investment deals during his visit. The government expects Saudi investments to reach $20 billion over the next few years.

Pakistan’s foreign exchange resaves slightly rose to $14.895 billion during the week ended February 8 compared with $14.885 billion in the previous week. The reserves held by the State Bank of Pakistan increased $13 million to $8.205 billion. However, the foreign currency reserves of commercial banks fell to $6.689 billion from $6.692 billion a week ago.

Pakistan’s total external debt and liabilities increased to $99.1 billion at the end of December 2018 from $95.3 billion in June.