Rupee ends stable

The rupee remained stable against the dollar in the interbank market on Tuesday, dealers said.

The local currency closed at 154.60 against the greenback, compared with the Monday’s closing of 154.59. Dealers said the local currency stayed flat due to healthy supplies and traded in the ranges of 154.60 and 154.80 against the dollar.

“The rupee is expected to remain steady around the current levels in the coming sessions. But the outcome of the FATF’s [Financial Action Task Force] joint group meeting, started in Beijing, is likely to be the key driver of its direction,” he said.

Pakistan is defending its compliance report on 22 major action plan points given by FATF to evaluate the performance of the country for combating money laundering and terrorism financing.

“If Pakistan gets more time to comply with all the remaining 22 points of the action plan, it will have positive implications for the local unit,” the dealer said. The rupee could weaken to 155 against the dollar if any negative news emerged from the FATF’s review meeting, he added.

Pakistan was put on the FATF’s grey list in June 2018 for 15 months. However, amid insufficient progress, Pakistan’s stay on the list was extended by four months at the last review held in October 2019.

The country’s progress would now be reassessed at the FATF’s upcoming meeting in Paris next month.