Rupee inches up

KARACHI: The rupee edged higher against the dollar on Tuesday due to the routine dollar demand from importers, dealers said.

In the interbank market, the rupee closed at 160.37 against the dollar, compared with the previous closing of 160.39.

The rupee ended at 160.35 against the dollar. It had finished at 160.40 in the previous session.

Dealers said the rupee remained flat in the absence of lower import payments.

“The rupee traded in a narrow range, amid insignificant importers’ dollar demand and the trading activity remained dull,” a foreign exchange dealer said.

The rupee is expected to hover in the band of 160 and 160.50 versus the greenback in the coming sessions, dealers said. There are some positive triggers for the rupee, they added.

The likelihood of the resumption of the suspended International Monetary Fund programme, positive macroeconomic indicators and sizeable improvement on the external account front lend support to the rupee this year.

The market-determined exchange rate regime, increase in remittances, lower energy import bill, and subdued local demand helped the current account balance posted a surplus in the five months of the current fiscal year.

The country posted a surplus of $1.640 billion in July-November FY21, compared with a deficit of $1.745 billion in the corresponding period of the last fiscal year.