Rupee stages recovery

KARACHI: Rupee recovered to end stronger against dollar on Wednesday as remittance inflows ahead of Eid-ul-Azha offset importers’ demand for greenback.

The rupee closed at 159.13 per dollar in the interbank market, compared with Tuesday’s close of 159.51. It appreciated 38 paisas or 0.24 percent during the session.

In the open market, the rupee gained 20 paisas and settled at 159.60 to dollar.

Dealers said the seasonal Eid-related inflows from remittances from overseas Pakistanis increased the supply of dollars in the market.

“Dollar demand from importers was there today, but increase in dollar inflows helped the rupee gain value,” said a foreign exchange dealer.

“We expect the rupee to gain more, breaking the 159 per dollar barrier in the coming days. The range for the local unit is expected to be 158.40 to 158.80 in the sessions ahead,” he added.

Pakistanis working abroad sent an all-time high of $29.4 billion to their families in the last fiscal year. Remittances were up 27 percent over last year, the fastest rate of expansion since FY2003.

These inflows climbed 9 percent year-on-year to $2.7 billion in June.