Rupee inches up

The rupee ended slightly higher on Wednesday due to insignificant dollar demand from importers, dealers said.

In the interbank market, the rupee closed at 156.30 against the greenback, compared with the previous closing of 156.32. However, the local unit gained 10 paisas to close at 156.50 to the dollar in the open market.

Dealers said the currency traded in a narrow range, moving in the range of 156.30 and 156.40 against the greenback. “The rupee remained stable because of lacklustre dollar demand from importers,” a dealer said. “There was no buying pressure, as importers had already covered payments last week.”

Pakistan’s financial markets were closed on September 9 and 10 for Ashura holidays. The rupee was expected to remain range-bound in the coming days, dealers said, adding that a smooth supply of dollars would support currency stability.

Investors took positive signals from the Financial Action Task Force’s meeting held in Bangkok on Monday. The country has submitted a report to the FATF on the initiatives it has taken to curb terrorism financing in the last four to five months.

Federal Minister for Economic Affairs Hammad Azhar told media that Islamabad had achieved targets unveiled earlier to prevent terrorism financing and money laundering. He also said Pakistan’s status would be decided in the light of FATF report next month.