Rupee strengthens

KARACHI: The rupee closed stronger on Monday led by foreign inflows and slowdown in the dollar demand from importers, dealers said.

In the interbank market, the local currency ended at 159.91 against the dollar, higher than its previous closing of 160.17, but below an intraday peak of 157.50.

“The local unit drew support from the inflows received from a multilateral lender to fight spread of the coronavirus outbreak,” a dealer at a commercial bank said.

“However, the rupee lost grounds at the closing, as the inflows got absorbed in the market.”

Dealers said there was no demand for the greenback due to contraction in imports, amid coronavirus pandemic lockdown restrictions.

Oil demand was also not there, despite lower prices, which lend support to the rupee, they added. “The see saw movement in the currency shows our exchange rate is indeed becoming market determined,” another dealer said.

Ramazan-related remittances are also helping the local currency to strengthen.

Overseas Pakistanis working abroad are sending remittances to their families and relatives back home during Ramazan, despite whatever economic hardships they are facing because of the pandemic.

In the open market, the rupee closed at 160.50 against the dollar, compared with the previous closing of 161.