Rupee ends steady

The rupee stayed flat against the dollar in the currency market on Thursday, dealers said.

In the interbank market, the rupee closed at 141.39 against the greenback, unchanged from the previous close.

The currency maintained the overnight levels in a dull trade due to normal demand from importers, dealers said.

“There was no big activity today… the dollar supplies were sufficient to cater to the market demand,” a dealer said.

“The next session will give clarity on the rupee’s path, but we expect the rupee to sustain at the present levels,” he said.

Some dealers see the rupee will weaken to 141.60 against the dollar if any renewed pressures exert on the local unit tomorrow.

In the open market, the rupee also closed flat at 143/dollar.

Investors were worried about the economic outlook of the country. The lower growth forecast from the Asian Development Bank (ADB) stoked fears among investors. The ADB, in its latest report said the real gross domestic growth will fall to 3.9 percent in the current fiscal year.

In its assessment of Pakistan’s economy in the ‘Asian Development Outlook’ for 2019, it said until macroeconomic imbalances are alleviated, the outlook is for slower growth, higher inflation, pressure on currency and heavy external financing is needed to maintain even a minimal cushion of foreign exchange reserves.