Rupee ends flat

KARACHI: The rupee closed flat on Thursday due to matching demand and supply of the US dollar, dealers said.

In the interbank market, the rupee ended at 161.89 per dollar, compared with Wednesday’s close of 161.90.

Dealers said the local unit opened weaker and remained volatile during the first session, but some supply of the greenback from export proceeds and remittances eased pressure on the currency, keeping it stable against the dollar.

The rupee traded as high as 161.99 versus the greenback during the session.

Traders were concerned as the resurgence in the coronavirus cases and a possible further lockdown by the government threatened to affect the trade activity and derail the economic recovery in the country.

“As far as the rupee is concerned, the coming days are expected to be volatile and apart from the demand and supply of the dollar, the number of coronavirus infections and the government’s strategy to curb the spread of the virus will be closely watched,” said a currency dealer.

The Sindh government is likely to impose a complete lockdown from next week to help control the rising trend in the Covid cases.

The rupee ended at 162 against the dollar in the open market, unchanged from the previous close.