Rupee ends flat

The rupee was little changed on Wednesday due to routine dollar demand from importers, dealers said. It ended at 138.81 against the greenback, compared with Tuesday’s closing of 138.82.

Dealers said the currency remained range-bound; however, the reports of receiving another $1 billion from the United Arab Emirates boosted investors’ sentiment.

“The remaining $1 billion of the $3 billion UAE’s financial support is expected to prop up foreign exchange reserves and the currency,” a dealer said.

The State Bank of Pakistan (SBP) last week signed an agreement with the Abu Dhabi Fund for Development (ADFD) for the placement of the second tranche of $2 billion.

The ADFD, in January, committed $3 billion through a deposit into the State Bank’s accounts.

In the open market, the rupee continued to maintain its firm trend against the dollar and closed at 139 to the dollar, unchanged from the previous close.

Exchange Companies Association of Pakistan (ECAP) Secretary General Zafar Paracha said the rupee-dollar parity stayed flat in the kerb market, amid dull dollar demand from general public and investors.

“There is no speculative dollar buying. The rupee remains stable due to strong screening for suspicious transactions under the SBP’s anti-money laundering laws,” Paracha added.