Rupee ends higher

KARACHI: The rupee gained on Wednesday after falling to a record low the previous day, but dealers said outflows of foreign funds from government securities were expected to keep pressure on the local unit.

The rupee closed at 167.76 per dollar, compared with Tuesday’s close of 167.89 in the interbank market. In the open market, the rupee ended firmer at 168 versus the greenback. Dealers said the rupee managed to post some gains due to improvement in supply of dollars caused by foreign inflows.

“We have seen around $10 million dollars received from Pakistanis working abroad,” said a foreign exchange dealer. “The recovery, however, in the domestic currency is short-lived and the rupee will stay under downward pressure in the near-term,” the dealer added.“The rapid hot money outflows from the country’s short-term debt market do not bode well for the currency and the foreign exchange reserves.”