Rupee ends flat

The rupee maintained its overnight levels against the dollar in the interbank market on Tuesday, traders said. It closed at 139.39 against the dollar, unchanged from the previous close.

Traders said the local unit remained in a narrow-range. “The currency was stable in the absence of market triggers,” a trader said.

The demand and the supply of the greenback were remained in balance, they said. “We see the rupee to remain trade in the present ranges in coming days,” he said.

The State Bank of Pakistan is expected to receive $1 billion from the United Arab Emirates (UAE) soon. The SBP signed an agreement with Abu Dhabi Fund for Development (ADFD) for the placement of the second tranche of $2 billion on March 9. The first tranche of $1 billion received in January, while the second installment for an amount of $1 billion arrived last week.

The rupee continued to drop a value against the dollar in the open market due to increased dollar demand from investors.

The rupee ended at 139.80 against the dollar, compared with previous close of 139.70.

Government has hinted at adopting a more flexible exchange rate policy by moving away from a managed currency regime, as the country vies for an early deal with the IMF.

As part of negotiations for the 22nd bailout package, the IMF had demanded that Pakistan should adopt a free-float exchange rate regime, according to media reports.