Rupee remains flat

The rupee closed almost flat against the dollar in the interbank market on Tuesday, dealers said. It ended at 156.98 against the greenback, little changed from its Monday’s closing of 156.99.

The currency was range-bound because of normal dollar demand from importers. Sentiment stayed positive as Qatar pledged $3 billion bailout package for Pakistan in the form of currency deposit and direct investment, dealers said.

In the open market, the rupee also maintained its overnight level of 156.90 against the dollar. The Qatar bailout package will take the combined bilateral loans during the current fiscal year to $12.7 billion.

The reports of signing letter of intent and memorandum of economic and financial

policies by Pakistan’s Adviser to Prime Minister on Finance Dr Hafeez Shaikh and State Bank of Pakistan Governor Reza Baqir for securing approval of $6 billion loan from the IMF’s Executive Board also improved sentiment.

Dealers expect the rupee to maintain stable trend against the greenback this week due to the lack of big import and debt payments. “The currency is likely to trade at the current levels in the coming sessions in the absence of payment pressure,” a forex dealer at a large commercial bank said.