Rupee edges lower

KARACHI: The rupee inched down on Tuesday amid routine dollar demand from importers, and dealers said the local unit could continue its range-bound move in coming days.

The rupee closed at 168.19 per dollar, slightly weaker from Monday’s close of 168.16 in the interbank foreign exchange market.

In the open market, the rupee ended firmer at 168.50 against the dollar.

Dealers said domestic currency remained stable due to matching demand and supply of the greenback in the market.

“There were fewer import payments. Most of the payments had been covered in the previous sessions,” said a currency dealer.

Sharp increase in workers’ remittances in the month of July boosted trader sentiment. The amount of money sent home by Pakistani workers living abroad hit a record high of $2.768 billion in July, whereas remittances recorded at $2.027 billion in the same month of the last fiscal year.

Another dealer said they expected the rupee to remain range-bound in the coming sessions. “Healthy dollar inflows in the form of remittances will increase the supply of greenback, keeping the rupee stable,” they added.

Dealers expect the facility of digital banking accounts for the overseas Pakistanis to help them route their remittances through formal channels. This would support remittance flows as well as the currency, they said.