Rupee gains

KARACHI: The rupee managed to extend further gains against the dollar in both the currency markets on Thursday, dealers said.

The rupee appreciated 0.17 percent to close at 160.02 versus the greenback, compared with the previous close of 160.29.

In the open market, the rupee rose 15 paisas to end at 160.25 against the dollar.

Dealers said the currency continued to appreciate aided by insignificant dollar demand from importers settling payments and ample supplies in the market.

“Dollar supply was higher than [the] demand today and with [the] slowing appetite for the greenback, the rupee should see more slight gains in the coming session,” a foreign exchange dealer said.

Traders expect the rupee to continue to be supported in the coming week, trading at 159.60 and 160 range, on the back of higher inflows and healthy exports.

Data issued by the Pakistan Bureau of Statistics (PBS) showed that exports increased 18.31 percent to $2.352 billion in December 2020 from $1.988 billion a year ago.

However, imports surged 25.5 percent to $5.035 billion in December, taking the trade deficit higher to $2.683 billion, up 32 percent from December 2019.

The outlook for the rupee remains stable this year. However, analysts, at the same time, expected a meager depreciation in the exchange rate.

The inflation rate differential with the country’s trading partners and the higher fiscal deficit is likely to cap the rupee’s gain in 2021.