Rupee recovers losses

KARACHI: The rupee recouped most of its early losses on Wednesday, as the reports of receiving a $1 billion inflows from multilateral lenders propped up the local currency.

In the interbank market, the rupee closed at 167.37 to the dollar after falling in opening deals to 168.10. It had ended at 166.65 on Tuesday.

“The rupee appreciated by 29 paisa after a fall of Re1.06 against the greenback owing to inflows of $1 billion from the World Bank and Asian Development Bank and shrinking current account deficit,” said Yaqoob Abubakar, an analyst at Tresmark.

“ADB and World Bank inflows were the theme of the day, while a 13 million surplus in May current account and continual reduction in the July-May FY2020 current account deficit also boosted market sentiment,” a dealer at a large commercial bank said. These disbursements could improve dollar supplies in the market, he added.

Market participants expect a further appreciation in the value of the rupee in coming days.

The rupee closed at 167.70 against the dollar in the open market, compared with the previous close of 167.80.