Rupee may stay flat

The rupee traded slightly higher against the dollar during the outgoing week, helped by a fewer import payments and increased inflows.

Dealers expect the currency to remain range-bound in the coming week due to insignificant dollar demand from importers and corporate firms.

Moreover, the political stability seen after the approval of the six-month extension in the army chief’s tenure from the Supreme Court will also help the local currency remain stable against the greenback.

"The local unit is likely to trade in the range of 155.25 and 155.35 versus the dollar over the next week," a dealer said.

In the interbank market, the rupee closed steady at 156.30 against the greenback on Monday. The rupee weakened three paisas to end at 155.33 to the dollar in the second session.

The currency pair was little changed on Wednesday by closing at 155.32. The rupee maintained its firmness and finished unchanged at 155.32 on Thursday, amid increased supply of the dollars.

The local currency gained nine paisas to close at 155.23 against the dollar on Friday because of soft demand for foreign currency from importers and positive sentiment.

The rupee increased 10 paisas to settle at 155.60 against the greenback in the open market during the week.

Dealers said the exchange rate got boost from the stability in the central bank’s foreign currency reserves amid official inflows.

Pakistan’s foreign exchange reserves increased to $15.577 billion during the week ended November 22 from $15.462 billion a week ago.

The forex reserves held by the State Bank of Pakistan increased $240 million to $8.682 billion.

However, the foreign exchange reserves held by commercial banks fell to $6.895 billion from $7.020 billion.

The interbank market on Friday saw the price of Euro go down by Re0.20, it traded at Rs170.9 against the last closing of Rs171.1.

The exchange rate of the Japanese Yen

remained flat at Rs1.41 whereas decrease of Rs0.67 was witnessed in the exchange rate

of British pound which was traded at Rs200.29 as compared to the last closing of Rs200.96.

The exchange rate of UAE dirham depreciated by Re0.02 to close at Rs42.26 in the last session, whereas the rate of Saudi Riyal decreased by Re0.03 to close at Rs41.39.