Rupee inches up

The rupee closed slightly higher against the dollar in the interbank market on Tuesday, dealers said. It ended at 140.27 against the greenback, compared with 140.29 in the previous session.

Dealers said the rupee traded in a range-bound manner on the back of routine dollar demand from importers. The reports of receiving $2.2 billion inflows from China also helped boost investors’ sentiment.

In the open market, the rupee posted moderate gains and closed at 141.20 against the dollar. It settled at 141.50 in the previous session.

“The rupee is likely to come under pressure next month due to foreign debt payments,” a dealer said.

“The country is set to pay loan repayments to the IMF,” he said, adding that around $1 billion worth of Eurobonds are maturing on April 15.

The State Bank of Pakistan received RMB 15 billion on Monday, equivalent to $2.2 billion as proceeds of the loan obtained by the government of Pakistan from China.

The bilateral financial inflows from China will increase Pakistan’s foreign exchange reserves to $17.909 billion.

Moreover, the SBP’s forex reserves will reach $11 billion. The country’s foreign exchange reserves stood at $15.709 billion and those of the SBP at $8.838 billion as of March 15.