Rupee ends higher

KARACHI: The rupee ended marginally stronger against the dollar on Monday due to reduced dollar demand from importers, dealers said.

In the interbank market, the rupee closed at 159.42 against the dollar, slightly higher from the previous closing of 159.46.

In the open market, the local currency gained 45 paisas to end at 160 versus the greenback.

Dealers said the domestic currency gained grounds on the back of limited demand for the dollars from importers and the corporates.

“The market saw a dull activity and the rupee remained range-bound, hovering in the band of 159.40 and 159.60 to the dollar during the session,” a currency dealer said.

“We anticipate the rupee to stay around the current levels in the coming sessions.”

Analysts see the rupee to trade in the range of 159 and 161 in the near-term. However, the local unit may fluctuate due to the number of reasons.

The currency moves are likely to be affected by the second wave of the coronavirus pandemic.

The virus surge and how it may impact exports, remittances and demand will determine the future course of the exchange rate, but others factors such as fiscal reforms, uninterrupted flow of liquidity, IMF and FATF could also come into play in terms of exchange rate moves.

The rupee may face downside pressure if the macroeconomic fundamentals deteriorate owing to the spread of the outbreak.

It; however, remains stable if businesses and offices operate undisrupted and the export orders are not contracted.