Rupee stable

The rupee ended flat against the dollar in the interbank foreign exchange market on Friday, dealers said. It closed at 156.19 against the greenback, compared with Thursday’s closing of 156.18.

Dealers said the currency commenced on a positive note, as it traded higher at 156 against the dollar in the morning helped by exporter dollar conversions. However, the local unit gave up gains in the last hour of trade to end flat.

In the open market, the rupee continued marginal gains due to dull demand for the foreign exchange. The rupee closed at 156.30, compared with 156.40 in the previous session. Currency dealers said the rupee was flat as cautious investors remained on the sidelines ahead of the monetary policy announcement on Monday by the State Bank of Pakistan.

Investors were awaiting the outcome of the monetary policy announcement. Most analysts expect the SBP to keep the policy rate unchanged at 13.25 percent, while some see a 25 basis points cut in the rate.

“If the SBP reduce the policy rate, then it would improve the market sentiment,” a dealer said.

The country’s foreign exchange reserves increased to $15.751 billion during the week ended September 6 from $15.619 billion in the previous week. The forex reserves held by the State Bank of Pakistan rose by $182 million to $8.462 billion.