Rupee inches up

The rupee edged higher against the dollar in the interbank currency market on Friday, dealers said. The local currency closed at 155.39 against the greenback, compared with the Wednesday’s closing of 155.41. Dealers said the currency traded in a range-bound manner, amid dull activity. The demand for the foreign exchange from importers remained the same.

In the open market, the rupee held steady for the second consecutive session. It closed at 155.40/dollar, unchanged from the previous trade.

Dealers expect the local unit to remain range-bound in the coming session. “The rupee could trade at the current levels due to increased supply of the dollar caused by healthy foreign inflows. Positive sentiments also offered some support to the rupee,” a foreign exchange dealer said.

Data issued by the State Bank of Pakistan (SBP) showed the country’s foreign exchange reserves fell to $15.502 billion during the week ended November 8 from $15.517 billion. However the foreign exchange reserves held by the State Bank of Pakistan rose $40 million to $8.397 billion.

State Bank of Pakistan Governor Dr Reza Baqir had said that the economy was moving in the right direction, amid stable foreign exchange and stock markets.