Rupee gains

KARACHI: The rupee gained slightly against the dollar in the interbank market on Tuesday, dealers said.

The rupee closed at 166.22 against the dollar, compared with the Monday’s closing of 166.29.

In the open market, the rupee ended at 166.45 to the dollar, marginally weaker from the previous closing of 166.40.

Dealers said the rupee gained ground due to the lack of import payments.

“We saw reduced dollar demand from importers, which supported the local unit during the session,” a foreign exchange dealer said.

“The market reacted positively to the central bank’s decision of keeping the policy rate unchanged at 7 percent,” the dealer added.

Traders said the State Bank of Pakistan wants to keep inflation in check by managing current account. This may bode well for the rupee in the days to follow.

The SBP, in a latest monetary policy statement said exports over the next few months may remain uneven, but overall gradual improvement is expected.