Rupee gains

KARACHI: The rupee rose on Tuesday, snapping three sessions of losses due to easing demand from importers, dealers said.

In the interbank market, the rupee closed at 153.33 per dollar, 0.22 percent stronger than its close of 153.66 on Monday. The rupee gained 30 paisa to close at 153.70 against the dollar in the open market. Dealers said fewer import payments and healthy inflows helped the local unit to regain ground during the session. Buying pressure of dollars from importers and corporates brought the rupee down in the previous sessions.

“The demand for the greenback was temporary. The rupee is likely to remain range-bound with a slight appreciation in the coming days to be helped by inflows from remittances and Roshan Digital Account,” said a dealer.

Strong foreign exchange reserves and moderate growth in exports could also lend support to the domestic currency. However, a pickup in imports and private sector credit, higher monthly current account deficit, and foreign debt repayments are expected to put pressure on the rupee.

The fall in oil prices could help reduce the country’s import bill. Pakistan’s trade deficit surged 97.6 percent to $2.968 billion in March.

“We have to see whether the rupee witnesses further consolidation or a reversal in the coming sessions,” said another dealer.