Rupee marginally higher

KARACHI: The rupee gained slightly against the dollar on Tuesday due to reduced demand for the US currency from importers, dealers said.

The rupee ended at 168.52 to the dollar in the interbank market, 0.12 percent stronger than Monday’s close of 168.72. In the open market, the rupee closed at 168.90. It settled at 169.60 in the previous session.

Dealers said the domestic currency managed to post mild gains because of the lackluster importer dollar demand, while the tightening of the monetary policy also helped soothe nerves about further depreciation of the exchange rate.

“We are monitoring whether the rupee maintains its recovery following the interest rates’ hike by the central bank. By and large, we expect the rupee to stay stable in coming days,” said a foreign exchange dealer.

The State Bank of Pakistan raised the policy rate by 25 basis points to 7.25 percent in a bid to contain inflationary pressures and a high current account deficit.