Rupee recovers

KARACHI: The rupee recouped some losses to close marginally higher on Friday as dollar supplies outmatched the demand for US currency, with dealers expecting stabilisation in the days ahead.

The rupee closed at 159.17 to the dollar, compared with the previous close of 159.33 in the interbank market.

It ended at 160.10 per dollar in the open market. It settled at 160.20 on Thursday.

“Demand was there, but the supply was more than the demand due to good inflows,” said a currency dealer.

“The strong foreign exchange reserves position also boosted the sentiment on the rupee,” he added. “We expect the local unit to remain stable for now; though some downward pressure may be witnessed by the end of this month, as payments are likely to pick up.”

Domestic currency was supported by the rising dollar inflows due to loan disbursements from China and the World Bank.

Pakistan’s forex reserves reached near an all-time high of $24.41 billion as of July 2. The central bank’s reserves stood at $17.2 billion. The State bank of Pakistan received $1 billion loan from China and $440 million from World Bank during the week.