Rupee strengthens

The rupee traded slightly stronger against the dollar in the interbank market on Friday, helped by a slowdown in the dollar demand from importers, dealers said.

The rupee closed at 156.83 against the greenback, compared with the previous closing of 156.96. Dealers said the currency traded in a narrow range due to routine dollar demand. “The rupee is likely to follow a range-bound trading pattern and it should hold in a 156.80-156.95 range next week, as there is no major payment expected,” a dealer said.

In the open market, the rupee maintained its firmer trend for the third consecutive session on the back of less dollar buying from individuals. It remained unchanged at 157 against the greenback.

“Buyers have lost interest in the dollar after the rupee stabilises. People had already covered the purchase of dollars to meet their requirements,” another dealer said. Pakistan’s foreign exchange reserves continue to deplete fuelled by foreign debt servicing obligations.

The country’s forex reserves fell to $14.639 billion during the week ended June 14 from $14.826 billion in the previous week. The forex reserves held by the State Bank of Pakistan dropped $203 million to $7.604 billion. The decline in the SBP’s reserves was attributed to foreign debt servicing and other official payments.