Rupee appreciates

KARACHI: The rupee recovered from losses to close higher against the dollar in both the currency markets on Thursday.

Domestic currency ended at 157.68 to the dollar, compared with Wednesday’s close of 158.53 in the interbank market. It appreciated by 85 paisas or 0.54 percent during the session.

The rupee rose sharply in the open market. It gained Rs1.30 to close at 158 per dollar. The local unit settled at 159.30 on Wednesday.

Dealers said the rupee gave up losses on the back of soft dollar demand from importers and healthy supplies.

“Dollar demand from importers was not high today. Increase in dollar inflows from remittances from Pakistanis abroad and sale of dollars from exporters helped the rupee gain value,” said a foreign exchange dealer.

“We expect the rupee will trade in a range-bound manner in the coming days. There will be some fluctuation depending on import and debt payments. But the currency should largely stay stable,” he added.

“The range for the local unit is expected to be 157.50 to 158 to the dollar in the coming sessions.”

Zafar Paracha, the former secretary general of Exchange Companies Association of Pakistan said the rupee strengthened in the kerb market following gains in the value of the rupee in the interbank foreign exchange dealings.

“Dollar buying in the open market has slowed down. Increased supply of dollars amid greenback selling by customers supported the domestic currency,” Paracha said. “I foresee the rupee to appreciate further, returning to the 155 level soon.”